Aaron Graft has been the CEO of Triumph Bancorp, Inc. (NASDAQ:TBK) since 2010. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Aaron Graft's Compensation Compare With Similar Sized Companies?
According to our data, Triumph Bancorp, Inc. has a market capitalization of US$823m, and pays its CEO total annual compensation worth US$1.1m. (This number is for the twelve months until December 2018). That's just a smallish increase of 7.5% on last year. While we always look at total compensation first, we note that the salary component is less, at US$515k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.3m.
A first glance this seems like a real positive for shareholders, since Aaron Graft 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.
You can see, below, how CEO compensation at Triumph Bancorp has changed over time.
Is Triumph Bancorp, Inc. Growing?
Triumph Bancorp, Inc. has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 42%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Triumph Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Triumph Bancorp, Inc. for providing a total return of 88% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Triumph 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 Aaron Graft 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. Shareholders may want to check for free if Triumph Bancorp insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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