In 2007 Jim Getz was appointed CEO of TriState Capital Holdings, Inc. (NASDAQ:TSC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Jim Getz's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that TriState Capital Holdings, Inc. has a market cap of US$568m, and is paying total annual CEO compensation of US$3.9m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$945k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.9m.
It would therefore appear that TriState Capital Holdings, Inc. pays Jim Getz more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at TriState Capital Holdings has changed from year to year.
Is TriState Capital Holdings, Inc. Growing?
On average over the last three years, TriState Capital Holdings, Inc. has grown earnings per share (EPS) by 29% each year (using a line of best fit). In the last year, its revenue is up 13%.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has TriState Capital Holdings, Inc. Been A Good Investment?
Most shareholders would probably be pleased with TriState Capital Holdings, Inc. for providing a total return of 34% 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.
We examined the amount TriState Capital Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying TriState Capital Holdings shares with their own money (free access).
Important note: TriState Capital Holdings 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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If you spot an error that warrants correction, please contact the editor at email@example.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.