Mike Crapps has been the CEO of First Community Corporation (NASDAQ:FCCO) since 1994. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mike Crapps's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that First Community Corporation has a market cap of US$144m, and is paying total annual CEO compensation of US$580k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$394k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$427k.
It would therefore appear that First Community Corporation pays Mike Crapps more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at First Community has changed from year to year.
Is First Community Corporation Growing?
First Community Corporation has increased its earnings per share (EPS) by an average of 9.8% a year, over the last three years (using a line of best fit). It achieved revenue growth of 18% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Shareholders might be interested in this free visualization of analyst forecasts.
Has First Community Corporation Been A Good Investment?
I think that the total shareholder return of 36%, over three years, would leave most First Community Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount First Community Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Community.
Important note: First Community 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.
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