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John D'Angelo has been the CEO of Investar Holding Corporation (NASDAQ:ISTR) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Investar Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For John D'Angelo Compare With Other Companies In The Industry?
Our data indicates that Investar Holding Corporation has a market capitalization of US$157m, and total annual CEO compensation was reported as US$966k for the year to December 2019. Notably, that's an increase of 13% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$473k.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$845k. From this we gather that John D'Angelo is paid around the median for CEOs in the industry. Moreover, John D'Angelo also holds US$2.7m worth of Investar Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Investar Holding pays out 49% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Investar Holding Corporation's Growth
Investar Holding Corporation has seen its earnings per share (EPS) increase by 6.2% a year over the past three years. In the last year, its revenue is up 8.2%.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Investar Holding Corporation Been A Good Investment?
Given the total shareholder loss of 33% over three years, many shareholders in Investar Holding Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, Investar Holding Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Investar Holding that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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