Marc Bogan has been the CEO of Fauquier Bankshares, Inc. (NASDAQ:FBSS) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Marc Bogan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Fauquier Bankshares, Inc. has a market cap of US$71m, and is paying total annual CEO compensation of US$678k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$310k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$303k.
Thus we can conclude that Marc Bogan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fauquier Bankshares, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Fauquier Bankshares, below.
Is Fauquier Bankshares, Inc. Growing?
Over the last three years Fauquier Bankshares, Inc. has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). It achieved revenue growth of 11% 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.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Fauquier Bankshares, Inc. Been A Good Investment?
Fauquier Bankshares, Inc. has generated a total shareholder return of 31% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount Fauquier Bankshares, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven’t been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Shareholders may want to check for free if Fauquier Bankshares insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.