In 2013 Patrick Ryan was appointed CEO of First Bank (NASDAQ:FRBA). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
How Does Patrick Ryan's Compensation Compare With Similar Sized Companies?
According to our data, First Bank has a market capitalization of US$212m, and pays its CEO total annual compensation worth US$785k. (This is based on the year to December 2018). That's a notable increase of 25% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$430k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
So Patrick Ryan is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at First Bank, below.
Is First Bank Growing?
First Bank has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). It achieved revenue growth of 32% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has First Bank Been A Good Investment?
I think that the total shareholder return of 64%, over three years, would leave most First Bank shareholders smiling. 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.
Patrick Ryan is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying First Bank shares with their own money (free access).
If you want to buy a stock that is better than First Bank, this free list of high return, low debt companies is a great place to look.
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 email@example.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.