Is HomeTrust Bancshares, Inc.'s (NASDAQ:HTBI) CEO Being Overpaid?
Dana Stonestreet has been the CEO of HomeTrust Bancshares, Inc. (NASDAQ:HTBI) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for HomeTrust Bancshares
How Does Dana Stonestreet's Compensation Compare With Similar Sized Companies?
Our data indicates that HomeTrust Bancshares, Inc. is worth US$460m, and total annual CEO compensation was reported as US$1.0m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$521k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
A first glance this seems like a real positive for shareholders, since Dana Stonestreet is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at HomeTrust Bancshares, below.
Is HomeTrust Bancshares, Inc. Growing?
On average over the last three years, HomeTrust Bancshares, Inc. has grown earnings per share (EPS) by 40% each year (using a line of best fit). It achieved revenue growth of 3.0% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has HomeTrust Bancshares, Inc. Been A Good Investment?
HomeTrust Bancshares, Inc. has not done too badly by shareholders, with a total return of 6.8%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
It appears that HomeTrust Bancshares, Inc. remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn't mean that Dana Stonestreet is paid too much. Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. Shareholders may want to check for free if HomeTrust Bancshares insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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