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In 2012 Richard Moore was appointed CEO of First Bancorp (NASDAQ:FBNC). 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 process should give us an idea about how appropriately the CEO is paid.
How Does Richard Moore's Compensation Compare With Similar Sized Companies?
Our data indicates that First Bancorp is worth US$1.1b, and total annual CEO compensation is US$1.2m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$400k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
A first glance this seems like a real positive for shareholders, since Richard Moore is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at First Bancorp has changed from year to year.
Is First Bancorp Growing?
On average over the last three years, First Bancorp has grown earnings per share (EPS) by 33% each year (using a line of best fit). Its revenue is up 13% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has First Bancorp Been A Good Investment?
I think that the total shareholder return of 111%, over three years, would leave most First Bancorp shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
First Bancorp is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Richard Moore deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying First Bancorp shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.