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Randy Chesler has been the CEO of Glacier Bancorp, Inc. (NASDAQ:GBCI) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Randy Chesler's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Glacier Bancorp, Inc. has a market cap of US$3.4b, and is paying total annual CEO compensation of US$1.9m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$720k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.2m.
A first glance this seems like a real positive for shareholders, since Randy Chesler 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.
You can see, below, how CEO compensation at Glacier Bancorp has changed over time.
Is Glacier Bancorp, Inc. Growing?
On average over the last three years, Glacier Bancorp, Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 22% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Glacier Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Glacier Bancorp, Inc. for providing a total return of 57% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Glacier Bancorp, Inc. 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. And given most shareholders are probably very happy with recent returns, you might even think that Randy Chesler deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Glacier Bancorp shares (free trial).
Important note: Glacier Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.