Advertisement
U.S. markets close in 4 hours 29 minutes
  • S&P 500

    5,255.66
    +7.17 (+0.14%)
     
  • Dow 30

    39,774.74
    +14.66 (+0.04%)
     
  • Nasdaq

    16,411.66
    +12.14 (+0.07%)
     
  • Russell 2000

    2,126.17
    +11.83 (+0.56%)
     
  • Crude Oil

    82.64
    +1.29 (+1.59%)
     
  • Gold

    2,235.80
    +23.10 (+1.04%)
     
  • Silver

    25.00
    +0.25 (+1.02%)
     
  • EUR/USD

    1.0804
    -0.0026 (-0.24%)
     
  • 10-Yr Bond

    4.1930
    -0.0030 (-0.07%)
     
  • GBP/USD

    1.2637
    -0.0001 (-0.01%)
     
  • USD/JPY

    151.2190
    -0.0270 (-0.02%)
     
  • Bitcoin USD

    71,075.19
    +1,891.79 (+2.73%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,971.39
    +39.41 (+0.50%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Here's What We Think About Southside Bancshares, Inc.'s (NASDAQ:SBSI) CEO Pay

In 2017, Lee Gibson was appointed CEO of Southside Bancshares, Inc. (NASDAQ:SBSI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Southside Bancshares

How Does Lee Gibson's Compensation Compare With Similar Sized Companies?

Our data indicates that Southside Bancshares, Inc. is worth US$964m, and total annual CEO compensation was reported as US$2.6m for the year to December 2019. That's a notable increase of 66% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$665k. 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$400m to US$1.6b. The median total CEO compensation was US$3.2m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Southside Bancshares. On a sector level, around 43% of total compensation represents salary and 57% is other remuneration. Southside Bancshares sets aside a smaller share of compensation for salary, in comparison to the overall industry.

So Lee Gibson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at Southside Bancshares, below.

NasdaqGS:SBSI CEO Compensation April 21st 2020
NasdaqGS:SBSI CEO Compensation April 21st 2020

Is Southside Bancshares, Inc. Growing?

On average over the last three years, Southside Bancshares, Inc. has seen earnings per share (EPS) move in a favourable direction by 7.7% each year (using a line of best fit). It achieved revenue growth of 1.3% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.

Has Southside Bancshares, Inc. Been A Good Investment?

Given the total loss of 5.5% over three years, many shareholders in Southside Bancshares, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Lee Gibson is close enough to the median pay for a CEO of a similar sized company .

The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. This contrasts with the growth in CEO remuneration. So many would argue that the CEO is certainly not underpaid. Taking a breather from CEO compensation, we've spotted 3 warning signs for Southside Bancshares (of which 1 doesn't sit too well with us!) you should know about in order to have a holistic understanding of the stock.

If you want to buy a stock that is better than Southside Bancshares, this free list of high return, low debt companies is a great place to look.

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.

Advertisement