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Is Glacier Bancorp, Inc.'s (NASDAQ:GBCI) CEO Overpaid Relative To Its Peers?

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In 2017 Randy Chesler was appointed CEO of Glacier Bancorp, Inc. (NASDAQ:GBCI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

See our latest analysis for Glacier Bancorp

How Does Randy Chesler's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Glacier Bancorp, Inc. has a market cap of US$4.1b, and reported total annual CEO compensation of US$1.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$720k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.

Most shareholders would consider it a positive that Randy Chesler takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Glacier Bancorp has changed from year to year.

NasdaqGS:GBCI CEO Compensation, February 21st 2020
NasdaqGS:GBCI CEO Compensation, February 21st 2020

Is Glacier Bancorp, Inc. Growing?

On average over the last three years, Glacier Bancorp, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 17% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Glacier Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 30% over three years, Glacier Bancorp, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Glacier Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size.

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 Randy Chesler is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Glacier Bancorp.

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 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.

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. Thank you for reading.