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

Simply Wall St

Lance Sellers became the CEO of Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

Check out 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$184m, and reported total annual CEO compensation of US$517k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$329k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total 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. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Peoples Bancorp of North Carolina has changed over time.

NasdaqGM:PEBK CEO Compensation, January 7th 2020
NasdaqGM:PEBK CEO Compensation, January 7th 2020

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 18% per year (using a line of best fit). It achieved revenue growth of 8.8% over the last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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

Most shareholders would probably be pleased with Peoples Bancorp of North Carolina, Inc. for providing a total return of 45% over three years. 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 pleasing shareholder returns are the cherry on top; you might even consider that Lance Sellers deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Peoples Bancorp of North Carolina shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.