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Ty Abston has been the CEO of Guaranty Bancshares, Inc. (NASDAQ:GNTY) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Guaranty Bancshares.
Comparing Guaranty Bancshares, Inc.'s CEO Compensation With the industry
According to our data, Guaranty Bancshares, Inc. has a market capitalization of US$290m, and paid its CEO total annual compensation worth US$882k over the year to December 2019. We note that's an increase of 8.2% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$406k.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$882k. From this we gather that Ty Abston is paid around the median for CEOs in the industry. Moreover, Ty Abston also holds US$4.2m worth of Guaranty Bancshares stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Guaranty Bancshares is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Guaranty Bancshares, Inc.'s Growth Numbers
Guaranty Bancshares, Inc. has seen its earnings per share (EPS) increase by 7.2% a year over the past three years. It achieved revenue growth of 1.5% over the last year.
We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Guaranty Bancshares, Inc. Been A Good Investment?
Since shareholders would have lost about 10.0% over three years, some Guaranty Bancshares, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Guaranty Bancshares, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Ty deserves a raise.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Guaranty Bancshares that you should be aware of before investing.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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