Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2013 John D'Angelo was appointed CEO of Investar Holding Corporation (NASDAQ:ISTR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does John D'Angelo's Compensation Compare With Similar Sized Companies?
According to our data, Investar Holding Corporation has a market capitalization of US$231m, and pays its CEO total annual compensation worth US$857k. (This number is for the twelve months until December 2018). Notably, that's an increase of 12% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$438k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
So John D'Angelo receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Investar Holding has changed from year to year.
Is Investar Holding Corporation Growing?
Over the last three years Investar Holding Corporation has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). Its revenue is up 23% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Investar Holding Corporation Been A Good Investment?
Most shareholders would probably be pleased with Investar Holding Corporation for providing a total return of 51% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
John D'Angelo is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Investar Holding insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.