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Is IBERIABANK Corporation’s (NASDAQ:IBKC) CEO Overpaid Relative To Its Peers?

Daryl Byrd has been the CEO of IBERIABANK Corporation (NASDAQ:IBKC) since 2000. 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.

See our latest analysis for IBERIABANK

How Does Daryl Byrd’s Compensation Compare With Similar Sized Companies?

According to our data, IBERIABANK Corporation has a market capitalization of US$3.9b, and pays its CEO total annual compensation worth US$8m. Notably, that’s an increase of 73% over the year before. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.

As you can see, Daryl Byrd is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean IBERIABANK Corporation is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at IBERIABANK has changed over time.

NasdaqGS:IBKC CEO Compensation October 26th 18

Is IBERIABANK Corporation Growing?

Over the last three years IBERIABANK Corporation has shrunk its earnings per share by an average of 5.9% per year. In the last year, its revenue is up 29%.

As investors, we do are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.

It could be important to check this free visual depiction of what analysts expect for the future.

Has IBERIABANK Corporation Been A Good Investment?

IBERIABANK Corporation has served shareholders reasonably well, with a total return of 29% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

We examined the amount IBERIABANK Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. So you may want to check if insiders are buying IBERIABANK Corporation shares with their own money (free access).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.