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In 2001 F. Dueser was appointed CEO of First Financial Bankshares, Inc. (NASDAQ:FFIN). 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. This process should give us an idea about how appropriately the CEO is paid.
How Does F. Dueser's Compensation Compare With Similar Sized Companies?
Our data indicates that First Financial Bankshares, Inc. is worth US$4.0b, and total annual CEO compensation is US$1.5m. (This number is for the twelve months until December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$921k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.3m.
Most shareholders would consider it a positive that F. Dueser takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at First Financial Bankshares has changed from year to year.
Is First Financial Bankshares, Inc. Growing?
Over the last three years First Financial Bankshares, Inc. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has First Financial Bankshares, Inc. Been A Good Investment?
Most shareholders would probably be pleased with First Financial Bankshares, Inc. for providing a total return of 83% over three years. 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.
First Financial Bankshares, Inc. is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that F. Dueser deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if First Financial Bankshares insiders are buying or selling shares.
If you want to buy a stock that is better than First Financial Bankshares, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.