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Should You Be Pleased About The CEO Pay At Equity Bancshares, Inc.'s (NASDAQ:EQBK)

Simply Wall St

Brad Elliott became the CEO of Equity Bancshares, Inc. (NASDAQ:EQBK) in 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Equity Bancshares

How Does Brad Elliott's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Equity Bancshares, Inc. has a market cap of US$443m, and reported total annual CEO compensation of US$3.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$712k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.

As you can see, Brad Elliott is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Equity Bancshares, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Equity Bancshares has changed over time.

NasdaqGS:EQBK CEO Compensation, December 9th 2019
NasdaqGS:EQBK CEO Compensation, December 9th 2019

Is Equity Bancshares, Inc. Growing?

Equity Bancshares, Inc. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.2% over the last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Equity Bancshares, Inc. Been A Good Investment?

Given the total loss of 18% over three years, many shareholders in Equity Bancshares, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Equity Bancshares, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Equity Bancshares (free visualization of insider trades).

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.