Richard Moore became the CEO of First Bancorp (NASDAQ:FBNC) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does Richard Moore's Compensation Compare With Similar Sized Companies?
According to our data, First Bancorp has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$1.2m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$400k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.5m.
A first glance this seems like a real positive for shareholders, since Richard Moore is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at First Bancorp, below.
Is First Bancorp Growing?
Over the last three years First Bancorp has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). Its revenue is up 3.1% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has First Bancorp Been A Good Investment?
With a total shareholder return of 27% over three years, First Bancorp shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It appears that First Bancorp remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Richard Moore is overcompensated. It's good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Bancorp.
Important note: First Bancorp 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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