CEO Mark Grescovich has done a decent job of delivering relatively good performance at Banner Corporation (NASDAQ:BANR) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28 April 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Banner

Comparing Banner Corporation's CEO Compensation With the industry

According to our data, Banner Corporation has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$2.7m over the year to December 2020. That's a notable increase of 17% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$839k.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$2.4m. So it looks like Banner compensates Mark Grescovich in line with the median for the industry. What's more, Mark Grescovich holds US$5.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. Banner pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Banner Corporation's Growth

Banner Corporation has seen its earnings per share (EPS) increase by 21% a year over the past three years. It saw its revenue drop 5.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Banner Corporation Been A Good Investment?

Banner Corporation has generated a total shareholder return of 6.0% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Banner that investors should be aware of in a dynamic business environment.

Important note: Banner is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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. 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.

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