This Is Why Southern Missouri Bancorp, Inc.'s (NASDAQ:SMBC) CEO Can Expect A Bump Up In Their Pay Packet
Key Insights
Southern Missouri Bancorp will host its Annual General Meeting on 30th of October
Total pay for CEO Greg Steffens includes US$440.4k salary
The total compensation is 53% less than the average for the industry
Southern Missouri Bancorp's total shareholder return over the past three years was 70% while its EPS grew by 4.7% over the past three years
The decent performance at Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) recently will please most shareholders as they go into the AGM coming up on 30th of October. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
Check out our latest analysis for Southern Missouri Bancorp
Comparing Southern Missouri Bancorp, Inc.'s CEO Compensation With The Industry
According to our data, Southern Missouri Bancorp, Inc. has a market capitalization of US$448m, and paid its CEO total annual compensation worth US$661k over the year to June 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of US$440.4k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the American Banks industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.4m. Accordingly, Southern Missouri Bancorp pays its CEO under the industry median. What's more, Greg Steffens holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$440k | US$440k | 67% |
Other | US$221k | US$212k | 33% |
Total Compensation | US$661k | US$652k | 100% |
Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Southern Missouri Bancorp is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Southern Missouri Bancorp, Inc.'s Growth
Over the past three years, Southern Missouri Bancorp, Inc. has seen its earnings per share (EPS) grow by 4.7% per year. In the last year, its revenue is up 10%.
This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Southern Missouri Bancorp, Inc. Been A Good Investment?
We think that the total shareholder return of 70%, over three years, would leave most Southern Missouri Bancorp, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Southern Missouri Bancorp that investors should be aware of in a dynamic business environment.
Switching gears from Southern Missouri 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
