Does Bank of Commerce Holdings's (NASDAQ:BOCH) CEO Salary Reflect Performance?
In 2013 Randy Eslick was appointed CEO of Bank of Commerce Holdings (NASDAQ:BOCH). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Bank of Commerce Holdings
How Does Randy Eslick's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bank of Commerce Holdings has a market cap of US$157m, and reported total annual CEO compensation of US$895k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$440k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.4m.
Most shareholders would consider it a positive that Randy Eslick takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Bank of Commerce Holdings has changed over time.
Is Bank of Commerce Holdings Growing?
Bank of Commerce Holdings has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bank of Commerce Holdings Been A Good Investment?
With a three year total loss of 16%, Bank of Commerce Holdings would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It looks like Bank of Commerce Holdings pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Randy Eslick is generously paid, it would be good to see an improvement in business performance before too an increase in pay. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Bank of Commerce Holdings that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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