Does South State Corporation's (NASDAQ:SSB) CEO Pay Compare Well With Peers?
Robert Hill has been the CEO of South State Corporation (NASDAQ:SSB) since 2004. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for South State
How Does Robert Hill's Compensation Compare With Similar Sized Companies?
Our data indicates that South State Corporation is worth US$2.5b, and total annual CEO compensation is US$3.2m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$782k. 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.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at South State, below.
Is South State Corporation Growing?
Over the last three years South State Corporation has grown its earnings per share (EPS) by an average of 5.8% per year (using a line of best fit). Its revenue is up 3.9% over last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has South State Corporation Been A Good Investment?
South State Corporation has generated a total shareholder return of 3.4% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
It appears that South State Corporation remunerates its CEO below most similar sized companies.
Robert Hill is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. However I do not find the CEO compensation to be concerning. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at South State.
Important note: South State 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.
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