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Is Fauquier Bankshares, Inc. (NASDAQ:FBSS) Excessively Paying Its CEO?

Simply Wall St

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Marc Bogan has been the CEO of Fauquier Bankshares, Inc. (NASDAQ:FBSS) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Fauquier Bankshares

How Does Marc Bogan's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Fauquier Bankshares, Inc. has a market cap of US$79m, and is paying total annual CEO compensation of US$709k. (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$319k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$471k.

Thus we can conclude that Marc Bogan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fauquier Bankshares, Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Fauquier Bankshares has changed from year to year.

NasdaqCM:FBSS CEO Compensation, July 18th 2019

Is Fauquier Bankshares, Inc. Growing?

Fauquier Bankshares, Inc. has increased its earnings per share (EPS) by an average of 62% a year, over the last three years (using a line of best fit). Its revenue is up 7.8% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Fauquier Bankshares, Inc. Been A Good Investment?

I think that the total shareholder return of 52%, over three years, would leave most Fauquier Bankshares, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount Fauquier Bankshares, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well 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 Fauquier Bankshares insiders are buying or selling shares.

Important note: Fauquier Bankshares 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.