In 2016 Jim Brush was appointed CEO of Summit State Bank (NASDAQ:SSBI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
How Does Jim Brush’s Compensation Compare With Similar Sized Companies?
Our data indicates that Summit State Bank is worth US$74m, and total annual CEO compensation is US$176k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$115k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$414k.
Most shareholders would consider it a positive that Jim Brush takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Summit State Bank, below.
Is Summit State Bank Growing?
Over the last three years Summit State Bank has shrunk its earnings per share by an average of 5.6% per year (measured with a line of best fit). In the last year, its revenue is up 18%.
Few shareholders would be pleased to read that earnings per share are lower over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Summit State Bank Been A Good Investment?
Summit State Bank has served shareholders reasonably well, with a total return of 31% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It looks like Summit State Bank pays its CEO less than similar sized companies.
Shareholders should note that compensation for Jim Brush is under the median of a group of similar sized companies. But the company lacks earnings per share growth, and returns to shareholders are less than stellar. We would like to see EPS growth from the business, although we wouldn’t say the CEO pay is high. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Summit State Bank (free visualization of insider trades).
If you want to buy a stock that is better than Summit State Bank, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.