Does Peoples Bancorp of North Carolina's (NASDAQ:PEBK) CEO Salary Compare Well With Industry Peers?
This article will reflect on the compensation paid to Lance Sellers who has served as CEO of Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) since 2012. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Peoples Bancorp of North Carolina.
View our latest analysis for Peoples Bancorp of North Carolina
How Does Total Compensation For Lance Sellers Compare With Other Companies In The Industry?
Our data indicates that Peoples Bancorp of North Carolina, Inc. has a market capitalization of US$105m, and total annual CEO compensation was reported as US$552k for the year to December 2019. That's a fairly small increase of 6.8% over the previous year. We note that the salary portion, which stands at US$337.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$631k. So it looks like Peoples Bancorp of North Carolina compensates Lance Sellers in line with the median for the industry. Moreover, Lance Sellers also holds US$479k worth of Peoples Bancorp of North Carolina stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$337k | US$329k | 61% |
Other | US$215k | US$189k | 39% |
Total Compensation | US$552k | US$517k | 100% |
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Peoples Bancorp of North Carolina pays out 61% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Peoples Bancorp of North Carolina, Inc.'s Growth
Over the past three years, Peoples Bancorp of North Carolina, Inc. has seen its earnings per share (EPS) grow by 9.8% per year. Revenue was pretty flat on last year.
We would prefer it if there was revenue growth, but the modest EPSgrowth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Peoples Bancorp of North Carolina, Inc. Been A Good Investment?
Given the total shareholder loss of 37% over three years, many shareholders in Peoples Bancorp of North Carolina, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As previously discussed, Lance is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, Peoples Bancorp of North Carolina is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. We'd stop short of saying CEO compensation is inappropriate, but without an improvement in performance, it's sure to draw criticism. Shareholders will also not want to see performance improving before agreeing to any raise.
Whatever your view on compensation, you might want to check if insiders are buying or selling Peoples Bancorp of North Carolina shares (free trial).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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