Jim Getz became the CEO of Tristate Capital Holdings, Inc. (NASDAQ:TSC) in 2007. 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.
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How Does Jim Getz’s Compensation Compare With Similar Sized Companies?
According to our data, Tristate Capital Holdings, Inc. has a market capitalization of US$634m, and pays its CEO total annual compensation worth US$3.8m. (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$945k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.2m.
As you can see, Jim Getz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Tristate Capital Holdings, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Tristate Capital Holdings has changed over time.
Is Tristate Capital Holdings, Inc. Growing?
On average over the last three years, Tristate Capital Holdings, Inc. has grown earnings per share (EPS) by 29% each year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Tristate Capital Holdings, Inc. Been A Good Investment?
Boasting a total shareholder return of 95% over three years, Tristate Capital Holdings, Inc. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Tristate Capital Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Tristate Capital Holdings insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 email@example.com.