In 1999 Greg Steffens was appointed CEO of Southern Missouri Bancorp, Inc. (NASDAQ:SMBC). 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. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Greg Steffens’s Compensation Compare With Similar Sized Companies?
According to our data, Southern Missouri Bancorp, Inc. has a market capitalization of US$322m, and pays its CEO total annual compensation worth US$530k. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$363k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.5m.
Most shareholders would consider it a positive that Greg Steffens takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Southern Missouri Bancorp has changed over time.
Is Southern Missouri Bancorp, Inc. Growing?
Over the last three years Southern Missouri Bancorp, Inc. has grown its earnings per share (EPS) by an average of 11% 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. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Southern Missouri Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Southern Missouri Bancorp, Inc. for providing a total return of 52% over three years. 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.
It looks like Southern Missouri Bancorp, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Greg Steffens deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Southern Missouri Bancorp (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.