How Much Did Community Bankers Trust's (NASDAQ:ESXB) CEO Pocket Last Year?
Rex Smith became the CEO of Community Bankers Trust Corporation (NASDAQ:ESXB) in 2010, 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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Community Bankers Trust
How Does Total Compensation For Rex Smith Compare With Other Companies In The Industry?
Our data indicates that Community Bankers Trust Corporation has a market capitalization of US$116m, and total annual CEO compensation was reported as US$950k for the year to December 2019. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$428k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$639k. Accordingly, our analysis reveals that Community Bankers Trust Corporation pays Rex Smith north of the industry median. Furthermore, Rex Smith directly owns US$396k worth of shares in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$428k | US$420k | 45% |
Other | US$523k | US$523k | 55% |
Total Compensation | US$950k | US$943k | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Community Bankers Trust is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Community Bankers Trust Corporation's Growth
Community Bankers Trust Corporation has seen its earnings per share (EPS) increase by 9.6% a year over the past three years. It saw its revenue drop 2.2% over the last year.
We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Community Bankers Trust Corporation Been A Good Investment?
Given the total shareholder loss of 39% over three years, many shareholders in Community Bankers Trust Corporation are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, Community Bankers Trust pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing for Community Bankers Trust, and although EPS growth is steady, it hasn't set the world on fire. And the situation doesn't look all that good when you see Rex is remunerated higher than the industry average. Taking all this into account, it could be hard to get shareholder support for giving Rex a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Community Bankers Trust (1 is significant!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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