Yahoo Finance It Looks Like Independent Bank Group, Inc.'s (NASDAQ:IBTX) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Independent Bank Group to hold its Annual General Meeting on 11th of June
CEO David Brooks' total compensation includes salary of US$959.4k
Total compensation is similar to the industry average
Over the past three years, Independent Bank Group's EPS fell by 20% and over the past three years, the total loss to shareholders 39%
Independent Bank Group, Inc. (NASDAQ:IBTX) has not performed well recently and CEO David Brooks will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 11th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for Independent Bank Group
Comparing Independent Bank Group, Inc.'s CEO Compensation With The Industry
According to our data, Independent Bank Group, Inc. has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$3.2m over the year to December 2023. We note that's a small decrease of 4.0% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$959k.
On comparing similar companies from the American Banks industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$3.0m. This suggests that Independent Bank Group remunerates its CEO largely in line with the industry average. What's more, David Brooks holds US$30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$959k | US$847k | 30% |
Other | US$2.3m | US$2.5m | 70% |
Total Compensation | US$3.2m | US$3.4m | 100% |
On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Independent Bank Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Independent Bank Group, Inc.'s Growth
Over the last three years, Independent Bank Group, Inc. has shrunk its earnings per share by 20% per year. Its revenue is down 20% over the previous year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Independent Bank Group, Inc. Been A Good Investment?
With a total shareholder return of -39% over three years, Independent Bank Group, Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Independent Bank Group.
Switching gears from Independent Bank Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
