In 2014 Joe Dively was appointed CEO of First Mid Bancshares, Inc. (NASDAQ:FMBH). 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 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 Joe Dively's Compensation Compare With Similar Sized Companies?
Our data indicates that First Mid Bancshares, Inc. is worth US$587m, and total annual CEO compensation was reported as US$1.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$414k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
A first glance this seems like a real positive for shareholders, since Joe Dively is paid less than the average total 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 a visual representation of the CEO compensation at First Mid Bancshares, below.
Is First Mid Bancshares, Inc. Growing?
First Mid Bancshares, Inc. has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). Its revenue is up 35% over last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has First Mid Bancshares, Inc. Been A Good Investment?
First Mid Bancshares, Inc. has generated a total shareholder return of 9.8% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It looks like First Mid Bancshares, Inc. pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Joe Dively 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Mid Bancshares (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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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