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Is Select Bancorp, Inc.'s (NASDAQ:SLCT) CEO Overpaid Relative To Its Peers?

Simply Wall St

In 2007 Bill Hedgepeth was appointed CEO of Select Bancorp, Inc. (NASDAQ:SLCT). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Select Bancorp

How Does Bill Hedgepeth's Compensation Compare With Similar Sized Companies?

According to our data, Select Bancorp, Inc. has a market capitalization of US$214m, and paid its CEO total annual compensation worth US$462k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$371k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.

A first glance this seems like a real positive for shareholders, since Bill Hedgepeth is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

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

NasdaqGM:SLCT CEO Compensation, October 22nd 2019

Is Select Bancorp, Inc. Growing?

Over the last three years Select Bancorp, Inc. has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). It achieved revenue growth of 18% over the last year.

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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Select Bancorp, Inc. Been A Good Investment?

I think that the total shareholder return of 37%, over three years, would leave most Select Bancorp, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

It looks like Select Bancorp, Inc. pays its CEO less than similar sized companies.

Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Bill Hedgepeth deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Select Bancorp.

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.