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Should You Worry About German American Bancorp, Inc.'s (NASDAQ:GABC) CEO Pay?

Simply Wall St

In 1999 Mark Schroeder was appointed CEO of German American Bancorp, Inc. (NASDAQ:GABC). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for German American Bancorp

How Does Mark Schroeder's Compensation Compare With Similar Sized Companies?

Our data indicates that German American Bancorp, Inc. is worth US$938m, and total annual CEO compensation was reported as US$922k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$390k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.5m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at German American Bancorp has changed over time.

NasdaqGS:GABC CEO Compensation, January 24th 2020

Is German American Bancorp, Inc. Growing?

Over the last three years German American Bancorp, Inc. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). In the last year, its revenue is up 28%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has German American Bancorp, Inc. Been A Good Investment?

German American Bancorp, Inc. has served shareholders reasonably well, with a total return of 13% over three years. 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...

It appears that German American Bancorp, Inc. remunerates its CEO below most similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Mark Schroeder is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling German American Bancorp shares (free trial).

If you want to buy a stock that is better than German American Bancorp, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.