John D’Angelo became the CEO of Investar Holding Corporation (NASDAQ:ISTR) in 2013. 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 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 John D’Angelo’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Investar Holding Corporation has a market cap of US$222m, and is paying total annual CEO compensation of US$769k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$397k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$967k.
That means John D’Angelo receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Investar Holding has changed from year to year.
Is Investar Holding Corporation Growing?
Investar Holding Corporation has increased its earnings per share (EPS) by an average of 3.8% a year, over the last three years (using a line of best fit). Its revenue is up 41% over last year.
It’s hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn’t shabby. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Investar Holding Corporation Been A Good Investment?
I think that the total shareholder return of 44%, over three years, would leave most Investar Holding Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for John D’Angelo is close enough to the median pay for a CEO of a similar sized company .
While the growth could be better, the shareholder returns are clearly good. So all things considered I’d venture that the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Investar Holding shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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 email@example.com.