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Charles Holland became the CEO of Veritex Holdings, Inc. (NASDAQ:VBTX) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Charles Holland's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Veritex Holdings, Inc. has a market cap of US$1.5b, and reported total annual CEO compensation of US$1.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$460k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Veritex Holdings, below.
Is Veritex Holdings, Inc. Growing?
On average over the last three years, Veritex Holdings, Inc. has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 120% over the last year.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Veritex Holdings, Inc. Been A Good Investment?
Veritex Holdings, Inc. has generated a total shareholder return of 9.5% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Veritex Holdings, Inc. is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Charles Holland is paid too much. Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Veritex Holdings.
Important note: Veritex Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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