Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
Litz Van Dyke has been the CEO of Carter Bank & Trust (NASDAQ:CARE) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Carter Bank & Trust pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Litz Van Dyke Compare With Other Companies In The Industry?
According to our data, Carter Bank & Trust has a market capitalization of US$190m, and paid its CEO total annual compensation worth US$799k over the year to December 2019. We note that's an increase of 8.6% above last year. In particular, the salary of US$570.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$933k. From this we gather that Litz Van Dyke is paid around the median for CEOs in the industry. What's more, Litz Van Dyke holds US$93k worth of shares in the company in their own name.
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. According to our research, Carter Bank & Trust 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.
Carter Bank & Trust's Growth
Carter Bank & Trust has seen its earnings per share (EPS) increase by 19% a year over the past three years. It achieved revenue growth of 12% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Carter Bank & Trust Been A Good Investment?
Given the total shareholder loss of 53% over three years, many shareholders in Carter Bank & Trust are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, Carter Bank & Trust pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But earnings growth is moving in a favorable direction, certainly a positive sign. Considering positive earnings growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Carter Bank & Trust that investors should look into moving forward.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email email@example.com.