Yahoo Finance Is BancorpSouth Bank's (NYSE:BXS) CEO Paid Enough Relative To Peers?
Dan Rollins became the CEO of BancorpSouth Bank (NYSE:BXS) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for BancorpSouth Bank
How Does Dan Rollins's Compensation Compare With Similar Sized Companies?
Our data indicates that BancorpSouth Bank is worth US$3.3b, and total annual CEO compensation was reported as US$3.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$916k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
So Dan Rollins 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.
You can see, below, how CEO compensation at BancorpSouth Bank has changed over time.
Is BancorpSouth Bank Growing?
On average over the last three years, BancorpSouth Bank has grown earnings per share (EPS) by 18% each year (using a line of best fit). It achieved revenue growth of 8.0% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has BancorpSouth Bank Been A Good Investment?
With a total shareholder return of 7.3% over three years, BancorpSouth Bank has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for Dan Rollins is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling BancorpSouth Bank (free visualization of insider trades).
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.
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