C. Cargill has been the CEO of Texas Capital Bancshares, Inc. (NASDAQ:TCBI) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
How Does C. Cargill's Compensation Compare With Similar Sized Companies?
According to our data, Texas Capital Bancshares, Inc. has a market capitalization of US$2.6b, and paid its CEO total annual compensation worth US$4.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$956k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
That means C. Cargill receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Texas Capital Bancshares, below.
Is Texas Capital Bancshares, Inc. Growing?
Over the last three years Texas Capital Bancshares, Inc. has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). It achieved revenue growth of 7.5% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Texas Capital Bancshares, Inc. Been A Good Investment?
Given the total loss of 8.9% over three years, many shareholders in Texas Capital Bancshares, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
C. Cargill is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Texas Capital Bancshares (free visualization of insider trades).
If you want to buy a stock that is better than Texas Capital Bancshares, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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.