How Should Investors Feel About Allegiance Bancshares, Inc.’s (NASDAQ:ABTX) CEO Pay?
George Martinez became the CEO of Allegiance Bancshares, Inc. (NASDAQ:ABTX) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Allegiance Bancshares
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How Does George Martinez’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Allegiance Bancshares, Inc. has a market cap of US$791m, and is paying total annual CEO compensation of US$500k. (This figure is for the year to 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$475k. 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$2.2m.
Most shareholders would consider it a positive that George Martinez takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Allegiance Bancshares, below.
Is Allegiance Bancshares, Inc. Growing?
Over the last three years Allegiance Bancshares, Inc. has grown its earnings per share (EPS) by an average of 7.8% per year (using a line of best fit). In the last year, its revenue is up 37%.
It’s great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Allegiance Bancshares, Inc. Been A Good Investment?
I think that the total shareholder return of 90%, over three years, would leave most Allegiance Bancshares, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
It looks like Allegiance Bancshares, Inc. pays its CEO less than similar sized companies.
George Martinez is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Allegiance Bancshares (free visualization of insider trades).
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.
