Denny Hudson has been the CEO of Seacoast Banking Corporation of Florida (NASDAQ:SBCF) since 1998. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Denny Hudson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Seacoast Banking Corporation of Florida is worth US$1.1b, and total annual CEO compensation is US$1.5m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$588k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.4m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Seacoast Banking of Florida, below.
Is Seacoast Banking Corporation of Florida Growing?
Over the last three years Seacoast Banking Corporation of Florida has grown its earnings per share (EPS) by an average of 34% per year. In the last year, its revenue is up 25%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Seacoast Banking Corporation of Florida Been A Good Investment?
Most shareholders would probably be pleased with Seacoast Banking Corporation of Florida for providing a total return of 56% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Seacoast Banking Corporation of Florida is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Denny Hudson deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Seacoast Banking of Florida.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.