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This article will reflect on the compensation paid to Chris Holmes who has served as CEO of FB Financial Corporation (NYSE:FBK) since 2013. This analysis will also assess whether FB Financial pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Chris Holmes Compare With Other Companies In The Industry?
At the time of writing, our data shows that FB Financial Corporation has a market capitalization of US$777m, and reported total annual CEO compensation of US$1.9m for the year to December 2019. Notably, that's a decrease of 8.2% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$478k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.0m. From this we gather that Chris Holmes is paid around the median for CEOs in the industry. What's more, Chris Holmes holds US$8.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. In FB Financial's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at FB Financial Corporation's Growth Numbers
FB Financial Corporation has seen its earnings per share (EPS) increase by 7.2% a year over the past three years. It achieved revenue growth of 10% over the last year.
We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 FB Financial Corporation Been A Good Investment?
Since shareholders would have lost about 35% over three years, some FB Financial Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, FB Financial Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. We'd stop short of saying CEO compensation is inappropriate, but without an improvement in performance, it's sure to draw criticism. Shareholders will also not want to see performance improving before agreeing to any raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for FB Financial you should be aware of, and 1 of them makes us a bit uncomfortable.
Switching gears from FB Financial, 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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