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In 2017 David Harlow was appointed CEO of BancFirst Corporation (NASDAQ:BANF). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does David Harlow's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that BancFirst Corporation has a market cap of US$2.0b, and reported total annual CEO compensation of US$664k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$500k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.9m.
A first glance this seems like a real positive for shareholders, since David Harlow is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at BancFirst has changed over time.
Is BancFirst Corporation Growing?
Over the last three years BancFirst Corporation has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). In the last year, its revenue is up 7.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has BancFirst Corporation Been A Good Investment?
Most shareholders would probably be pleased with BancFirst Corporation for providing a total return of 41% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that BancFirst Corporation remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that David Harlow deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying BancFirst shares with their own money (free access).
If you want to buy a stock that is better than BancFirst, this free list of high return, low debt companies is a great place to look.
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