Should You Worry About Independent Bank Corporation’s (NASDAQ:IBCP) CEO Salary Level?
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Brad Kessel became the CEO of Independent Bank Corporation (NASDAQ:IBCP) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Independent Bank
How Does Brad Kessel’s Compensation Compare With Similar Sized Companies?
Our data indicates that Independent Bank Corporation is worth US$488m, and total annual CEO compensation is US$1.1m. (This number is for the twelve months until December 2018). We note that’s an increase of 11% above last year. While we always look at total compensation first, we note that the salary component is less, at US$480k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.6m.
So Brad Kessel receives a similar amount to the median CEO pay, amongst 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 Corporation Growing?
Over the last three years Independent Bank Corporation has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Independent Bank Corporation Been A Good Investment?
Boasting a total shareholder return of 55% over three years, Independent Bank Corporation 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.
In Summary…
Brad Kessel 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. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Independent Bank shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 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. Thank you for reading.
