Our View On Horizon Bancorp's (NASDAQ:HBNC) CEO Pay
This article will reflect on the compensation paid to Craig Dwight who has served as CEO of Horizon Bancorp, Inc. (NASDAQ:HBNC) since 2001. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Horizon Bancorp.
View our latest analysis for Horizon Bancorp
How Does Total Compensation For Craig Dwight Compare With Other Companies In The Industry?
At the time of writing, our data shows that Horizon Bancorp, Inc. has a market capitalization of US$454m, and reported total annual CEO compensation of US$1.2m for the year to December 2019. That's just a smallish increase of 6.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$559k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.2m. So it looks like Horizon Bancorp compensates Craig Dwight in line with the median for the industry. Moreover, Craig Dwight also holds US$4.5m worth of Horizon Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$559k | US$540k | 45% |
Other | US$679k | US$623k | 55% |
Total Compensation | US$1.2m | US$1.2m | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Although there is a difference in how total compensation is set, Horizon Bancorp more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Horizon Bancorp, Inc.'s Growth Numbers
Horizon Bancorp, Inc. has seen its earnings per share (EPS) increase by 18% a year over the past three years. It achieved revenue growth of 14% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Horizon Bancorp, Inc. Been A Good Investment?
Given the total shareholder loss of 39% over three years, many shareholders in Horizon Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we noted earlier, Horizon Bancorp pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. Overall, we wouldn't say Craig is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Horizon Bancorp that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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