In 2008 George Martinez was appointed CEO of Allegiance Bancshares, Inc. (NASDAQ:ABTX). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Allegiance Bancshares

How Does George Martinez's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Allegiance Bancshares, Inc. has a market cap of US$709m, and reported total annual CEO compensation of US$521k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$490k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Allegiance Bancshares has changed from year to year.

Is Allegiance Bancshares, Inc. Growing?

On average over the last three years, Allegiance Bancshares, Inc. has grown earnings per share (EPS) by 14% each year (using a line of best fit). In the last year, its revenue is up 61%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Allegiance Bancshares, Inc. Been A Good Investment?

Allegiance Bancshares, Inc. has served shareholders reasonably well, with a total return of 21% over three years. 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...

Allegiance Bancshares, Inc. is currently paying its CEO below what is normal for companies of its size.

Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest George Martinez is overcompensated. It's good to see reasonable payment of the CEO, even while the business improves. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Allegiance Bancshares.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.