- Oops!Something went wrong.Please try again later.
Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
Mark Grescovich has been the CEO of Banner Corporation (NASDAQ:BANR) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Banner.
Comparing Banner Corporation's CEO Compensation With the industry
According to our data, Banner Corporation has a market capitalization of US$1.2b, and paid its CEO total annual compensation worth US$2.3m over the year to December 2019. We note that's a decrease of 9.7% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$815k.
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$3.6m. That is to say, Mark Grescovich is paid under the industry median. Furthermore, Mark Grescovich directly owns US$5.9m worth of shares in the company, implying that they are deeply invested in the company's success.
Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Banner pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Banner Corporation's Growth
Over the past three years, Banner Corporation has seen its earnings per share (EPS) grow by 11% per year. Revenue was pretty flat on last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Banner Corporation Been A Good Investment?
With a three year total loss of 30% for the shareholders, Banner Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, Banner Corporation is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However we must not forget that the EPS growth has been very strong over three years. Considering earnings are on the up, we would say Mark is compensated fairly. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Banner that you should be aware of before investing.
Switching gears from Banner, 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 firstname.lastname@example.org.