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Does Southern First Bancshares Inc’s (NASDAQ:SFST) CEO Salary Reflect Performance?

In 1999 Art Seaver was appointed CEO of Southern First Bancshares Inc (NASDAQ:SFST). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for Southern First Bancshares

How Does Art Seaver’s Compensation Compare With Similar Sized Companies?

Our data indicates that Southern First Bancshares Inc is worth US$279m, and total annual CEO compensation is US$927k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$460k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$927k.

That means Art Seaver receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Southern First Bancshares has changed from year to year.

NasdaqGM:SFST CEO Compensation November 26th 18

Is Southern First Bancshares Inc Growing?

Over the last three years Southern First Bancshares Inc has grown its earnings per share (EPS) by an average of 12% per year. In the last year, its revenue is up 17%.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Southern First Bancshares Inc Been A Good Investment?

Most shareholders would probably be pleased with Southern First Bancshares Inc for providing a total return of 68% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Art Seaver is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Southern First Bancshares.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

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 editorial-team@simplywallst.com.