F. Dueser became the CEO of First Financial Bankshares, Inc. (NASDAQ:FFIN) in 2001. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does F. Dueser’s Compensation Compare With Similar Sized Companies?
According to our data, First Financial Bankshares, Inc. has a market capitalization of US$4.1b, and pays its CEO total annual compensation worth US$1.7m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$836k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.1m.
A first glance this seems like a real positive for shareholders, since F. Dueser is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at First Financial Bankshares has changed over time.
Is First Financial Bankshares, Inc. Growing?
First Financial Bankshares, Inc. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years Its revenue is up 13% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has First Financial Bankshares, Inc. Been A Good Investment?
Boasting a total shareholder return of 104% over three years, First Financial Bankshares, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like First Financial Bankshares, Inc. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that F. Dueser deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying First Financial Bankshares shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings 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 firstname.lastname@example.org.