Should You Worry About Home Bancorp, Inc.'s (NASDAQ:HBCP) CEO Pay Cheque?
John Bordelon has been the CEO of Home Bancorp, Inc. (NASDAQ:HBCP) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for Home Bancorp
How Does John Bordelon's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Home Bancorp, Inc. has a market cap of US$376m, and is paying total annual CEO compensation of US$802k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$358k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
A first glance this seems like a real positive for shareholders, since John Bordelon 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, below, how CEO compensation at Home Bancorp has changed over time.
Is Home Bancorp, Inc. Growing?
Over the last three years Home Bancorp, Inc. has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). Its revenue is up 9.7% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Home Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 51%, over three years, would leave most Home Bancorp, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It looks like Home Bancorp, Inc. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that John Bordelon deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Home Bancorp.
If you want to buy a stock that is better than Home Bancorp, this free list of high return, low debt companies is a great place to look.
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.
