Is First Guaranty Bancshares, Inc.'s (NASDAQ:FGBI) CEO Being Overpaid?
Alton Lewis became the CEO of First Guaranty Bancshares, Inc. (NASDAQ:FGBI) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 First Guaranty Bancshares
How Does Alton Lewis's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that First Guaranty Bancshares, Inc. has a market cap of US$118m, and reported total annual CEO compensation of US$500k for the year to December 2019. That's just a smallish increase of 5.4% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$346k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$596k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of First Guaranty Bancshares. On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. According to our research, First Guaranty Bancshares has allocated a higher percentage of pay to salary in comparison to the broader sector.
So Alton Lewis receives a similar amount to the median CEO pay, amongst 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. The graphic below shows how CEO compensation at First Guaranty Bancshares has changed from year to year.
Is First Guaranty Bancshares, Inc. Growing?
On average over the last three years, First Guaranty Bancshares, Inc. has seen earnings per share (EPS) move in a favourable direction by 1.5% each year (using a line of best fit). It achieved revenue growth of 13% over the last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.
Has First Guaranty Bancshares, Inc. Been A Good Investment?
Since shareholders would have lost about 37% over three years, some First Guaranty Bancshares, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Alton Lewis is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Moving away from CEO compensation for the moment, we've identified 1 warning sign for First Guaranty Bancshares that you should be aware of before investing.
If you want to buy a stock that is better than First Guaranty Bancshares, 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. 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. Thank you for reading.
