Is Pacific Premier Bancorp, Inc.'s (NASDAQ:PPBI) CEO Pay Justified?

In this article:

Steve Gardner became the CEO of Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) in 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Pacific Premier Bancorp

How Does Steve Gardner's Compensation Compare With Similar Sized Companies?

Our data indicates that Pacific Premier Bancorp, Inc. is worth US$1.7b, and total annual CEO compensation was reported as US$4.7m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$751k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$3.9m.

So Steve Gardner is paid around the average of 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.

You can see, below, how CEO compensation at Pacific Premier Bancorp has changed over time.

NasdaqGS:PPBI CEO Compensation, February 26th 2020
NasdaqGS:PPBI CEO Compensation, February 26th 2020

Is Pacific Premier Bancorp, Inc. Growing?

Pacific Premier Bancorp, Inc. has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). Its revenue is up 15% over last year.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Pacific Premier Bancorp, Inc. Been A Good Investment?

Given the total loss of 29% over three years, many shareholders in Pacific Premier Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Steve Gardner is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Pacific Premier Bancorp insiders are buying or selling shares.

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.

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.

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. Thank you for reading.

Advertisement