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Is Southern Missouri Bancorp, Inc.'s (NASDAQ:SMBC) CEO Pay Justified?

Simply Wall St

Greg Steffens became the CEO of Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) in 1999. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

View our latest analysis for Southern Missouri Bancorp

How Does Greg Steffens's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Southern Missouri Bancorp, Inc. has a market cap of US$340m, and reported total annual CEO compensation of US$552k for the year to June 2019. That's a fairly small increase of 4.1% on year before. While we always look at total compensation first, we note that the salary component is less, at US$372k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.

A first glance this seems like a real positive for shareholders, since Greg Steffens is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Southern Missouri Bancorp has changed over time.

NasdaqGM:SMBC CEO Compensation, November 8th 2019

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 18% per year (using a line of best fit). It achieved revenue growth of 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Southern Missouri Bancorp, Inc. Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Southern Missouri Bancorp, Inc. has done well by shareholders. 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...

Southern Missouri Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size.

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! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Southern Missouri Bancorp shares (free trial).

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.