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How Does BancFirst's (NASDAQ:BANF) CEO Salary Compare to Peers?

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·3 min read
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  • BANF

This article will reflect on the compensation paid to David Harlow who has served as CEO of BancFirst Corporation (NASDAQ:BANF) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for BancFirst

Comparing BancFirst Corporation's CEO Compensation With the industry

At the time of writing, our data shows that BancFirst Corporation has a market capitalization of US$1.8b, and reported total annual CEO compensation of US$711k for the year to December 2019. That's a modest increase of 7.2% on the prior year. Notably, the salary which is US$535.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$2.6m. That is to say, David Harlow is paid under the industry median. What's more, David Harlow holds US$841k worth of shares in the company in their own name.

Component

2019

2018

Proportion (2019)

Salary

US$535k

US$500k

75%

Other

US$176k

US$164k

25%

Total Compensation

US$711k

US$664k

100%

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. BancFirst is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

BancFirst Corporation's Growth

BancFirst Corporation's earnings per share (EPS) grew 4.2% per year over the last three years. In the last year, its revenue is down 5.2%.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has BancFirst Corporation Been A Good Investment?

BancFirst Corporation has not done too badly by shareholders, with a total return of 5.4%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As previously discussed, David is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, EPS growth and shareholder returns over the past three years have not impressed us. So, even though we don't think CEO compensation is too generous, shareholders will likely want to see more growth before they agree that David deserves a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for BancFirst that investors should look into moving forward.

Switching gears from BancFirst, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.