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Why Simmons First National Corporation's (NASDAQ:SFNC) CEO Pay Matters To You

Simply Wall St

George Makris became the CEO of Simmons First National Corporation (NASDAQ:SFNC) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Simmons First National

How Does George Makris's Compensation Compare With Similar Sized Companies?

Our data indicates that Simmons First National Corporation is worth US$2.3b, and total annual CEO compensation is US$4.6m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$745k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.

So George Makris receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Simmons First National, below.

NasdaqGS:SFNC CEO Compensation, August 30th 2019
NasdaqGS:SFNC CEO Compensation, August 30th 2019

Is Simmons First National Corporation Growing?

Over the last three years Simmons First National Corporation has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue is up 14%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Simmons First National Corporation Been A Good Investment?

Simmons First National Corporation has generated a total shareholder return of 2.5% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for George Makris is close enough to the median pay for a CEO of a similar sized company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying Simmons First National shares with their own money (free access).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.