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How Should Investors Feel About Community Bankers Trust Corporation’s (NASDAQ:ESXB) CEO Pay?

Simply Wall St

In 2010 Rex Smith was appointed CEO of Community Bankers Trust Corporation (NASDAQ:ESXB). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

View our latest analysis for Community Bankers Trust

How Does Rex Smith’s Compensation Compare With Similar Sized Companies?

Our data indicates that Community Bankers Trust Corporation is worth US$168m, and total annual CEO compensation is US$907k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$410k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$901k.

That means Rex Smith receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Community Bankers Trust, below.

NasdaqCM:ESXB CEO Compensation, February 26th 2019

Is Community Bankers Trust Corporation Growing?

Community Bankers Trust Corporation has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 7.0%.

This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has Community Bankers Trust Corporation Been A Good Investment?

I think that the total shareholder return of 54%, over three years, would leave most Community Bankers Trust Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Rex Smith is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Community Bankers Trust shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.