Should You Worry About MetroCity Bankshares, Inc.'s (NASDAQ:MCBS) CEO Salary Level?
Nack Paek has been the CEO of MetroCity Bankshares, Inc. (NASDAQ:MCBS) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
Check out our latest analysis for MetroCity Bankshares
How Does Nack Paek's Compensation Compare With Similar Sized Companies?
Our data indicates that MetroCity Bankshares, Inc. is worth US$307m, and total annual CEO compensation was reported as US$2.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$334k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$2.0m.
So Nack Paek is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at MetroCity Bankshares, below.
Is MetroCity Bankshares, Inc. Growing?
Over the last three years MetroCity Bankshares, Inc. has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). In the last year, its revenue is up 6.7%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has MetroCity Bankshares, Inc. Been A Good Investment?
I think that the total shareholder return of 94%, over three years, would leave most MetroCity Bankshares, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Nack Paek is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Looking into other areas, we've picked out 2 warning signs for MetroCity Bankshares that investors should think about before committing capital to this stock.
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.
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.
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