In 2015 Kevin McPhaill was appointed CEO of Sierra Bancorp (NASDAQ:BSRR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Kevin McPhaill’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sierra Bancorp has a market cap of US$388m, and is paying total annual CEO compensation of US$871k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$434k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Sierra Bancorp has changed over time.
Is Sierra Bancorp Growing?
Over the last three years Sierra Bancorp has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is up 12%.
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 Sierra Bancorp Been A Good Investment?
Most shareholders would probably be pleased with Sierra Bancorp for providing a total return of 45% 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 looks like Sierra Bancorp pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Kevin McPhaill deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Sierra Bancorp insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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