U.S. Markets close in 2 hrs 4 mins
  • S&P 500

    3,320.08
    +49.05 (+1.50%)
     
  • Dow 30

    26,752.65
    +232.70 (+0.88%)
     
  • Nasdaq

    11,214.19
    +209.32 (+1.90%)
     
  • Russell 2000

    1,549.99
    +6.72 (+0.44%)
     
  • Crude Oil

    36.18
    -1.21 (-3.24%)
     
  • Gold

    1,868.20
    -11.00 (-0.59%)
     
  • Silver

    23.39
    +0.03 (+0.11%)
     
  • EUR/USD

    1.1659
    -0.0090 (-0.7695%)
     
  • 10-Yr Bond

    0.8280
    +0.0470 (+6.02%)
     
  • Vix

    36.32
    -3.96 (-9.83%)
     
  • GBP/USD

    1.2907
    -0.0080 (-0.6144%)
     
  • USD/JPY

    104.6800
    +0.3790 (+0.3634%)
     
  • BTC-USD

    13,579.61
    +424.24 (+3.22%)
     
  • CMC Crypto 200

    266.73
    +24.05 (+9.91%)
     
  • FTSE 100

    5,581.75
    -1.05 (-0.02%)
     
  • Nikkei 225

    23,331.94
    -86.57 (-0.37%)
     
COMING UP:

Apple fiscal Q4 earnings preview

How Much Is Lakeland Financial's (NASDAQ:LKFN) CEO Getting Paid?

Simply Wall St
·4 mins read

Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!

David Findlay has been the CEO of Lakeland Financial Corporation (NASDAQ:LKFN) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Lakeland Financial.

View our latest analysis for Lakeland Financial

Comparing Lakeland Financial Corporation's CEO Compensation With the industry

According to our data, Lakeland Financial Corporation has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$1.6m over the year to December 2019. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$593k.

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$2.1m. From this we gather that David Findlay is paid around the median for CEOs in the industry. What's more, David Findlay holds US$8.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$593k

US$567k

38%

Other

US$989k

US$1.0m

62%

Total Compensation

US$1.6m

US$1.6m

100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. In Lakeland Financial's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Lakeland Financial Corporation's Growth Numbers

Lakeland Financial Corporation's earnings per share (EPS) grew 14% per year over the last three years. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Lakeland Financial Corporation Been A Good Investment?

With a total shareholder return of 3.3% over three years, Lakeland Financial Corporation has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, David is compensated close to the median for companies of its size, and which belong to the same industry. But earnings growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

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. We identified 2 warning signs for Lakeland Financial (1 shouldn't be ignored!) that you should be aware of before investing here.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.