Steve Gardner has been the CEO of Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) since 2000. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Steve Gardner's Compensation Compare With Similar Sized Companies?
Our data indicates that Pacific Premier Bancorp, Inc. is worth US$1.9b, and total annual CEO compensation is US$4.7m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$751k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
So Steve Gardner receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Pacific Premier Bancorp has changed over time.
Is Pacific Premier Bancorp, Inc. Growing?
On average over the last three years, Pacific Premier Bancorp, Inc. has grown earnings per share (EPS) by 19% each year (using a line of best fit). It achieved revenue growth of 44% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Pacific Premier Bancorp, Inc. Been A Good Investment?
Pacific Premier Bancorp, Inc. has generated a total shareholder return of 22% 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.
Steve Gardner is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Pacific Premier Bancorp (free visualization of insider trades).
If you want to buy a stock that is better than Pacific Premier Bancorp, this free list of high return, low debt companies is a great place to look.
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.