In 2013 Dana Stonestreet was appointed CEO of HomeTrust Bancshares, Inc. (NASDAQ:HTBI). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Dana Stonestreet's Compensation Compare With Similar Sized Companies?
Our data indicates that HomeTrust Bancshares, Inc. is worth US$454m, and total annual CEO compensation is US$2.5m. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$505k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.
Thus we can conclude that Dana Stonestreet receives more in total compensation than the median of a group of companies in the same market, and of similar size to HomeTrust Bancshares, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at HomeTrust Bancshares has changed from year to year.
Is HomeTrust Bancshares, Inc. Growing?
Over the last three years HomeTrust Bancshares, Inc. 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 4.0%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has HomeTrust Bancshares, Inc. Been A Good Investment?
Boasting a total shareholder return of 35% over three years, HomeTrust Bancshares, Inc. has done well by shareholders. 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.
We compared the total CEO remuneration paid by HomeTrust Bancshares, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if HomeTrust Bancshares insiders are buying or selling shares.
Important note: HomeTrust Bancshares may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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