In 2009 Dan Schrider was appointed CEO of Sandy Spring Bancorp, Inc. (NASDAQ:SASR). 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Dan Schrider’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sandy Spring Bancorp, Inc. has a market cap of US$1.1b, and is paying total annual CEO compensation of US$1.5m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$605k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Sandy Spring Bancorp has changed over time.
Is Sandy Spring Bancorp, Inc. Growing?
On average over the last three years, Sandy Spring Bancorp, Inc. has grown earnings per share (EPS) by 13% each year (using a line of best fit). In the last year, its revenue is up 44%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Sandy Spring Bancorp, Inc. Been A Good Investment?
Sandy Spring Bancorp, Inc. has served shareholders reasonably well, with a total return of 32% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Sandy Spring Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that Dan Schrider is overcompensated.
It’s good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sandy Spring Bancorp.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.