John Corbett has been the CEO of CenterState Bank Corporation (NASDAQ:CSFL) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does John Corbett’s Compensation Compare With Similar Sized Companies?
According to our data, CenterState Bank Corporation has a market capitalization of US$2.3b, and pays its CEO total annual compensation worth US$2.1m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$600k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.5m.
Most shareholders would consider it a positive that John Corbett 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, below, how CEO compensation at CenterState Bank has changed over time.
Is CenterState Bank Corporation Growing?
Over the last three years CenterState Bank Corporation has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). In the last year, its revenue is up 59%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
You might want to check this free visual report on analyst forecasts for future earnings.
Has CenterState Bank Corporation Been A Good Investment?
Most shareholders would probably be pleased with CenterState Bank Corporation for providing a total return of 84% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
CenterState Bank Corporation is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that John Corbett deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling CenterState Bank shares (free trial).
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 firstname.lastname@example.org.