Dennis Woods became the CEO of United Security Bancshares (NASDAQ:UBFO) in 1993. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dennis Woods's Compensation Compare With Similar Sized Companies?
Our data indicates that United Security Bancshares is worth US$176m, and total annual CEO compensation is US$2.3m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$564k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.
Thus we can conclude that Dennis Woods receives more in total compensation than the median of a group of companies in the same market, and of similar size to United Security Bancshares. However, this doesn't necessarily mean the pay is too high. 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 United Security Bancshares has changed over time.
Is United Security Bancshares Growing?
On average over the last three years, United Security Bancshares has grown earnings per share (EPS) by 29% each year (using a line of best fit). Its revenue is up 13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has United Security Bancshares Been A Good Investment?
Boasting a total shareholder return of 84% over three years, United Security Bancshares 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 compared total CEO remuneration at United Security Bancshares with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if United Security Bancshares insiders are buying or selling shares.
If you want to buy a stock that is better than United Security 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.