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How Should Investors Feel About Home Bancshares, Inc. (Conway, AR)'s (NASDAQ:HOMB) CEO Pay?

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In 2009 Randy Sims was appointed CEO of Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Home Bancshares (Conway AR)

How Does Randy Sims's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Home Bancshares, Inc. (Conway, AR) has a market cap of US$3.3b, and is paying total annual CEO compensation of US$704k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$309k. 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$5.2m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Home Bancshares (Conway AR), below.

NasdaqGS:HOMB CEO Compensation, July 4th 2019
NasdaqGS:HOMB CEO Compensation, July 4th 2019

Is Home Bancshares, Inc. (Conway, AR) Growing?

On average over the last three years, Home Bancshares, Inc. (Conway, AR) has grown earnings per share (EPS) by 11% each year (using a line of best fit). In the last year, its revenue is up 15%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Home Bancshares, Inc. (Conway, AR) Been A Good Investment?

Home Bancshares, Inc. (Conway, AR) has generated a total shareholder return of 7.6% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

It appears that Home Bancshares, Inc. (Conway, AR) remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Randy Sims is paid too much.

It's good to see reasonable payment of the CEO, even while the business improves. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Home Bancshares (Conway AR).

Important note: Home Bancshares (Conway AR) 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.

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