In 2003 Chris Oddleifson was appointed CEO of Independent Bank Corp (NASDAQ:INDB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Chris Oddleifson’s Compensation Compare With Similar Sized Companies?
According to our data, Independent Bank Corp has a market capitalization of US$2.2b, and pays its CEO total annual compensation worth US$3m. That’s a fairly small increase of 1.0% on year before. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3m.
So Chris Oddleifson is paid around the average of 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.
The graphic below shows how CEO compensation at Independent Bank has changed from year to year.
Is Independent Bank Corp Growing?
Over the last three years Independent Bank Corp has grown its earnings per share (EPS) by an average of 14% per year. It achieved revenue growth of 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Independent Bank Corp Been A Good Investment?
I think that the total shareholder return of 66%, over three years, would leave most Independent Bank Corp shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Chris Oddleifson is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Independent Bank Corp shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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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 firstname.lastname@example.org.