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Dennis Nixon has been the CEO of International Bancshares Corporation (NASDAQ:IBOC) since 1979. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dennis Nixon’s Compensation Compare With Similar Sized Companies?
According to our data, International Bancshares Corporation has a market capitalization of US$2.6b, and pays its CEO total annual compensation worth US$2.1m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$660k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.7m.
Most shareholders would consider it a positive that Dennis Nixon takes less 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 International Bancshares has changed over time.
Is International Bancshares Corporation Growing?
On average over the last three years, International Bancshares Corporation has grown earnings per share (EPS) by 14% each year (using a line of best fit). Its revenue is up 10% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has International Bancshares Corporation Been A Good Investment?
Most shareholders would probably be pleased with International Bancshares Corporation for providing a total return of 82% over three years. 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.
It looks like International Bancshares Corporation pays its CEO less than similar sized companies. 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 Dennis Nixon deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling International Bancshares (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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. On rare occasion, data errors may occur. Thank you for reading.