Dave Nelson has been the CEO of West Bancorporation, Inc. (NASDAQ:WTBA) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dave Nelson's Compensation Compare With Similar Sized Companies?
According to our data, West Bancorporation, Inc. has a market capitalization of US$347m, and paid its CEO total annual compensation worth US$1.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$436k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.9m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at West Bancorporation has changed from year to year.
Is West Bancorporation, Inc. Growing?
Over the last three years West Bancorporation, Inc. has grown its earnings per share (EPS) by an average of 7.1% per year (using a line of best fit). It achieved revenue growth of 2.9% over the last year.
I'd prefer higher 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has West Bancorporation, Inc. Been A Good Investment?
With a total shareholder return of 21% over three years, West Bancorporation, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It appears that West Bancorporation, Inc. remunerates its CEO below most similar sized companies.
Dave Nelson receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. But on this analysis I see no issue with the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at West Bancorporation.
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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