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

Simply Wall St

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In 2000 Daryl Byrd was appointed CEO of IBERIABANK Corporation (NASDAQ:IBKC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View 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$4.1b, and pays its CEO total annual compensation worth US$5.3m. (This is based on the year to December 2018). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.3m.

That means Daryl Byrd receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

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

NasdaqGS:IBKC CEO Compensation, June 6th 2019

Is IBERIABANK Corporation Growing?

Over the last three years IBERIABANK Corporation has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). It achieved revenue growth of 13% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has IBERIABANK Corporation Been A Good Investment?

With a total shareholder return of 25% over three years, IBERIABANK Corporation 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...

Daryl Byrd is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling IBERIABANK (free visualization of insider trades).

Important note: IBERIABANK 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.

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.

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. Thank you for reading.