In 2013 Will Stafford was appointed CEO of First Community Bancshares Inc (NASDAQ:FCBC). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Will Stafford’s Compensation Compare With Similar Sized Companies?
According to our data, First Community Bancshares Inc has a market capitalization of US$566m, and pays its CEO total annual compensation worth US$668k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$400k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.6m.
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.
You can see a visual representation of the CEO compensation at First Community Bancshares, below.
Is First Community Bancshares Inc Growing?
Over the last three years First Community Bancshares Inc has grown its earnings per share (EPS) by an average of 6.2% per year. Its revenue is up 6.6% over last year.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
It could be important to check this free visual depiction of what analysts expect for the future.
Has First Community Bancshares Inc Been A Good Investment?
I think that the total shareholder return of 89%, over three years, would leave most First Community Bancshares Inc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
It looks like First Community Bancshares Inc pays its CEO less than similar sized companies.
It’s well worth noting that while Will Stafford is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. So you may want to check if insiders are buying First Community Bancshares shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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.