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How Much Did First Internet Bancorp's (NASDAQ:INBK) CEO Pocket Last Year?

Simply Wall St

David Becker has been the CEO of First Internet Bancorp (NASDAQ:INBK) since 2005. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for First Internet Bancorp

How Does David Becker's Compensation Compare With Similar Sized Companies?

According to our data, First Internet Bancorp has a market capitalization of US$201m, and pays its CEO total annual compensation worth US$1.5m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$700k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.2m.

So David Becker is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at First Internet Bancorp, below.

NasdaqGS:INBK CEO Compensation, September 3rd 2019
NasdaqGS:INBK CEO Compensation, September 3rd 2019

Is First Internet Bancorp Growing?

Over the last three years First Internet Bancorp has grown its earnings per share (EPS) by an average of 1.2% per year (using a line of best fit). Its revenue is up 3.3% over last year.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has First Internet Bancorp Been A Good Investment?

Since shareholders would have lost about 13% over three years, some First Internet Bancorp shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for David Becker is close enough to the median pay for a CEO of a similar sized company .

The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Internet Bancorp.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.