Charles Holland became the CEO of Veritex Holdings, Inc. (NASDAQ:VBTX) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Charles Holland’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Veritex Holdings, Inc. has a market cap of US$571m, and is paying total annual CEO compensation of US$891k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$375k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.6m.
Most shareholders would consider it a positive that Charles Holland takes less compensation than the CEOs of most similar size companies, leaving more 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 a visual representation of the CEO compensation at Veritex Holdings, below.
Is Veritex Holdings, Inc. Growing?
On average over the last three years, Veritex Holdings, Inc. has grown earnings per share (EPS) by 10% each year. Its revenue is up 99% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Veritex Holdings, Inc. Been A Good Investment?
I think that the total shareholder return of 47%, over three years, would leave most Veritex Holdings, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Veritex Holdings, Inc. 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 Charles Holland 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 Veritex Holdings (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.