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Charlie Maddy has been the CEO of Summit Financial Group, Inc. (NASDAQ:SMMF) since 1994. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Charlie Maddy’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Summit Financial Group, Inc. has a market cap of US$303m, and is paying total annual CEO compensation of US$879k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$448k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.5m.
A first glance this seems like a real positive for shareholders, since Charlie Maddy is paid less than the average compensation paid by similar sized companies. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Summit Financial Group has changed over time.
Is Summit Financial Group, Inc. Growing?
On average over the last three years, Summit Financial Group, Inc. has grown earnings per share (EPS) by 9.6% each year (using a line of best fit). In the last year, its revenue is up 7.1%.
I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Summit Financial Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 104% over three years, Summit Financial Group, Inc. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Summit Financial Group, Inc. pays its CEO less than similar sized companies.
Charlie Maddy receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Shareholders may want to check for free if Summit Financial Group insiders are buying or selling shares.
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.