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Fleetwood Hassell became the CEO of Bank of South Carolina Corporation (NASDAQ:BKSC) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bank of South Carolina.
Comparing Bank of South Carolina Corporation's CEO Compensation With the industry
According to our data, Bank of South Carolina Corporation has a market capitalization of US$93m, and paid its CEO total annual compensation worth US$334k over the year to December 2019. That's a modest increase of 6.4% on the prior year. We note that the salary portion, which stands at US$286.3k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$631k. In other words, Bank of South Carolina pays its CEO lower than the industry median. Moreover, Fleetwood Hassell also holds US$2.4m worth of Bank of South Carolina 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. According to our research, Bank of South Carolina has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Bank of South Carolina Corporation's Growth Numbers
Bank of South Carolina Corporation's earnings per share (EPS) grew 6.1% per year over the last three years. In the last year, its revenue is up 1.2%.
We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bank of South Carolina Corporation Been A Good Investment?
Bank of South Carolina Corporation has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As we touched on above, Bank of South Carolina Corporation is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, EPS growth and shareholder returns over the past three years have not impressed us. Therefore, despite CEO compensation being fair by all accounts, shareholders will probably want to see more growth before they decide that Fleetwood deserves a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Bank of South Carolina that investors should look into moving forward.
Important note: Bank of South Carolina is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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