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In 2007 Van Dukeman was appointed CEO of First Busey Corporation (NASDAQ:BUSE). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Van Dukeman's Compensation Compare With Similar Sized Companies?
Our data indicates that First Busey Corporation is worth US$1.5b, and total annual CEO compensation is US$2.1m. (This is based on the year to December 2018). Notably, that's an increase of 16% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$634k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$3.9m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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, below, how CEO compensation at First Busey has changed over time.
Is First Busey Corporation Growing?
On average over the last three years, First Busey Corporation has grown earnings per share (EPS) by 12% each year (using a line of best fit). In the last year, its revenue is up 12%.
This demonstrates that the company has been improving recently. A good result. 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 First Busey Corporation Been A Good Investment?
Most shareholders would probably be pleased with First Busey Corporation for providing a total return of 45% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that First Busey Corporation remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Van Dukeman deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Busey (free visualization of insider trades).
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 firstname.lastname@example.org. 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.