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In the past three years, the share price of First Busey Corporation (NASDAQ:BUSE) has struggled to generate growth for its shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 19 May 2021. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Comparing First Busey Corporation's CEO Compensation With the industry
At the time of writing, our data shows that First Busey Corporation has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$2.4m for the year to December 2020. That's a notable increase of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$675k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$2.4m. This suggests that First Busey remunerates its CEO largely in line with the industry average. Furthermore, Van Dukeman directly owns US$9.0m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that First Busey allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at First Busey Corporation's Growth Numbers
First Busey Corporation's earnings per share (EPS) grew 14% per year over the last three years. It achieved revenue growth of 1.5% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has First Busey Corporation Been A Good Investment?
With a three year total loss of 10% for the shareholders, First Busey Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Busey.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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