Is Southwest Georgia Financial Corporation (NYSEMKT:SGB) Overpaying Its CEO?
George Drew became the CEO of Southwest Georgia Financial Corporation (NYSEMKT:SGB) in 2002. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Southwest Georgia Financial
How Does George Drew's Compensation Compare With Similar Sized Companies?
Our data indicates that Southwest Georgia Financial Corporation is worth US$52m, and total annual CEO compensation was reported as US$496k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$300k. 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$510k.
That means George Drew receives fairly typical remuneration for the CEO of a company that size. 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 Southwest Georgia Financial has changed over time.
Is Southwest Georgia Financial Corporation Growing?
Southwest Georgia Financial Corporation has increased its earnings per share (EPS) by an average of 8.1% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.0%.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Southwest Georgia Financial Corporation Been A Good Investment?
With a total shareholder return of 31% over three years, Southwest Georgia Financial Corporation shareholders would, in general, be reasonably content. 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...
George Drew is paid around the same as most CEOs of similar size companies.
We think many would like to see better growth. While the CEO may not be underpaid, we don't think the pay is too generous either. Whatever your view on compensation, you might want to check if insiders are buying or selling Southwest Georgia Financial shares (free trial).
Important note: Southwest Georgia Financial 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.
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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.
