Dennis Woods has been the CEO of United Security Bancshares (NASDAQ:UBFO) since 1993, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether United Security Bancshares pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing United Security Bancshares' CEO Compensation With the industry
According to our data, United Security Bancshares has a market capitalization of US$120m, and paid its CEO total annual compensation worth US$842k over the year to December 2019. We note that's an increase of 9.7% above last year. We note that the salary portion, which stands at US$575.8k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$626k. This suggests that Dennis Woods is paid more than the median for the industry. What's more, Dennis Woods holds US$7.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that United Security Bancshares pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
United Security Bancshares' Growth
Over the past three years, United Security Bancshares has seen its earnings per share (EPS) grow by 4.9% per year. Its revenue is down 19% over the previous year.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has United Security Bancshares Been A Good Investment?
Given the total shareholder loss of 18% over three years, many shareholders in United Security Bancshares are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, United Security Bancshares pays its CEO higher than the norm for similar-sized companies belonging to the same industry. The growth in the business has been uninspiring, but the shareholder returns for United Security Bancshares have arguably been worse, over the last three years. And the situation doesn't look all that good when you see Dennis is remunerated higher than the industry average. Taking all this into account, it could be hard to get shareholder support for giving Dennis a raise.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for United Security Bancshares that investors should look into moving forward.
Switching gears from United Security Bancshares, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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