Yahoo Finance Here's What We Think About SmartFinancial, Inc.'s (NASDAQ:SMBK) CEO Pay
Billy Carroll became the CEO of SmartFinancial, Inc. (NASDAQ:SMBK) in 2015. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for SmartFinancial
How Does Billy Carroll's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that SmartFinancial, Inc. has a market cap of US$309m, and is paying total annual CEO compensation of US$612k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$380k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at SmartFinancial, below.
Is SmartFinancial, Inc. Growing?
On average over the last three years, SmartFinancial, Inc. has grown earnings per share (EPS) by 32% each year (using a line of best fit). Its revenue is up 30% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has SmartFinancial, Inc. Been A Good Investment?
SmartFinancial, Inc. has generated a total shareholder return of 32% over three years, so most shareholders would 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...
SmartFinancial, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Billy Carroll is paid too much.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling SmartFinancial shares (free trial).
Important note: SmartFinancial 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.
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.
