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Is Sandy Spring Bancorp, Inc.'s (NASDAQ:SASR) CEO Pay Justified?

Simply Wall St

Dan Schrider became the CEO of Sandy Spring Bancorp, Inc. (NASDAQ:SASR) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Sandy Spring Bancorp

How Does Dan Schrider's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Sandy Spring Bancorp, Inc. has a market cap of US$1.2b, and is paying total annual CEO compensation of US$1.8m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$694k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Sandy Spring Bancorp has changed from year to year.

NasdaqGS:SASR CEO Compensation, September 3rd 2019

Is Sandy Spring Bancorp, Inc. Growing?

Over the last three years Sandy Spring Bancorp, Inc. has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). In the last year, its revenue is up 22%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Sandy Spring Bancorp, Inc. Been A Good Investment?

Sandy Spring Bancorp, Inc. has served shareholders reasonably well, with a total return of 18% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It appears that Sandy Spring Bancorp, Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Dan Schrider is overcompensated.

It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if Sandy Spring Bancorp insiders are buying or selling shares.

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.