Ken Karels became the CEO of Great Western Bancorp, Inc. (NYSE:GWB) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ken Karels’s Compensation Compare With Similar Sized Companies?
According to our data, Great Western Bancorp, Inc. has a market capitalization of US$1.7b, and pays its CEO total annual compensation worth US$3.2m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$825k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3.8m.
That means Ken Karels receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Great Western Bancorp has changed over time.
Is Great Western Bancorp, Inc. Growing?
On average over the last three years, Great Western Bancorp, Inc. has grown earnings per share (EPS) by 9.5% each year. It achieved revenue growth of 7.6% over the last year.
I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Great Western Bancorp, Inc. Been A Good Investment?
With a total shareholder return of 6.5% over three years, Great Western Bancorp, Inc. has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Ken Karels is close enough to the median pay for a CEO of a similar sized company .
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don’t think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Great Western Bancorp (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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 email@example.com.