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Is Peoples Bancorp of North Carolina, Inc.'s (NASDAQ:PEBK) CEO Overpaid Relative To Its Peers?

Simply Wall St

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Lance Sellers has been the CEO of Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Peoples Bancorp of North Carolina

How Does Lance Sellers's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Peoples Bancorp of North Carolina, Inc. has a market cap of US$168m, and is paying total annual CEO compensation of US$517k. (This number is for the twelve months until December 2018). That's a notable increase of 11% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$329k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.

A first glance this seems like a real positive for shareholders, since Lance Sellers is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Peoples Bancorp of North Carolina, below.

NasdaqGM:PEBK CEO Compensation, June 5th 2019

Is Peoples Bancorp of North Carolina, Inc. Growing?

Over the last three years Peoples Bancorp of North Carolina, Inc. has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 6.5%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Peoples Bancorp of North Carolina, Inc. Been A Good Investment?

I think that the total shareholder return of 70%, over three years, would leave most Peoples Bancorp of North Carolina, Inc. shareholders smiling. 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.

In Summary...

Peoples Bancorp of North Carolina, Inc. is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Lance Sellers deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. 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 Peoples Bancorp of North Carolina.

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 editorial-team@simplywallst.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.