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Our View On Peoples Bancorp's (NASDAQ:PEBO) CEO Pay

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Simply Wall St
·3 min read
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Chuck Sulerzyski became the CEO of Peoples Bancorp Inc. (NASDAQ:PEBO) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Peoples Bancorp

Comparing Peoples Bancorp Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Peoples Bancorp Inc. has a market capitalization of US$512m, and reported total annual CEO compensation of US$1.3m for the year to December 2019. That's a slight decrease of 7.1% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.

On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.2m. So it looks like Peoples Bancorp compensates Chuck Sulerzyski in line with the median for the industry. Moreover, Chuck Sulerzyski also holds US$1.5m worth of Peoples Bancorp stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

US$600k

US$565k

46%

Other

US$700k

US$835k

54%

Total Compensation

US$1.3m

US$1.4m

100%

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. Although there is a difference in how total compensation is set, Peoples 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.

ceo-compensation
ceo-compensation

A Look at Peoples Bancorp Inc.'s Growth Numbers

Over the last three years, Peoples Bancorp Inc. has shrunk its earnings per share by 11% per year. It saw its revenue drop 15% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Peoples Bancorp Inc. Been A Good Investment?

Given the total shareholder loss of 9.8% over three years, many shareholders in Peoples 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, Peoples Bancorp pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Peoples Bancorp that you should be aware of before investing.

Switching gears from Peoples Bancorp, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.