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This article will reflect on the compensation paid to Van Dukeman who has served as CEO of First Busey Corporation (NASDAQ:BUSE) since 2007. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for First Busey.
How Does Total Compensation For Van Dukeman Compare With Other Companies In The Industry?
Our data indicates that First Busey Corporation has a market capitalization of US$1.1b, and total annual CEO compensation was reported as US$2.2m for the year to December 2019. That's a fairly small increase of 6.0% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$662k.
On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$1.9m. So it looks like First Busey compensates Van Dukeman in line with the median for the industry. Moreover, Van Dukeman also holds US$7.0m worth of First Busey 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. First Busey pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at First Busey Corporation's Growth Numbers
First Busey Corporation has seen its earnings per share (EPS) increase by 6.0% a year over the past three years. Its revenue is down 3.2% over the previous year.
We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has First Busey Corporation Been A Good Investment?
Since shareholders would have lost about 27% over three years, some First Busey Corporation investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
As we noted earlier, First Busey pays its CEO in line with similar-sized companies belonging to the same industry. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. 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 Van deserves a raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for First Busey (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from First Busey, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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