Rick Smith has been the CEO of TriCo Bancshares (NASDAQ:TCBK) since 1999. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rick Smith's Compensation Compare With Similar Sized Companies?
Our data indicates that TriCo Bancshares is worth US$1.1b, and total annual CEO compensation is US$3.2m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$715k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
So Rick Smith is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at TriCo Bancshares, below.
Is TriCo Bancshares Growing?
On average over the last three years, TriCo Bancshares has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 31% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has TriCo Bancshares Been A Good Investment?
Most shareholders would probably be pleased with TriCo Bancshares for providing a total return of 48% 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.
Rick 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. Shareholders may want to check for free if TriCo Bancshares insiders are buying or selling shares.
Important note: TriCo Bancshares 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.
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