Should You Be Pleased About The CEO Pay At Southern National Bancorp of Virginia, Inc.'s (NASDAQ:SONA)
In 2017 Joe Shearin was appointed CEO of Southern National Bancorp of Virginia, Inc. (NASDAQ:SONA). 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 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.
Check out our latest analysis for Southern National Bancorp of Virginia
How Does Joe Shearin's Compensation Compare With Similar Sized Companies?
Our data indicates that Southern National Bancorp of Virginia, Inc. is worth US$379m, and total annual CEO compensation was reported as US$1.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$521k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
A first glance this seems like a real positive for shareholders, since Joe Shearin is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Southern National Bancorp of Virginia, below.
Is Southern National Bancorp of Virginia, Inc. Growing?
On average over the last three years, Southern National Bancorp of Virginia, Inc. has grown earnings per share (EPS) by 33% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
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 Southern National Bancorp of Virginia, Inc. Been A Good Investment?
With a total shareholder return of 8.3% over three years, Southern National Bancorp of Virginia, Inc. has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
It appears that Southern National Bancorp of Virginia, 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. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Joe Shearin 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Southern National Bancorp of Virginia (free visualization of insider trades).
Important note: Southern National Bancorp of Virginia may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.
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