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Should You Worry About Simmons First National Corporation’s (NASDAQ:SFNC) CEO Pay Cheque?

Devin Koller

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George Makris became the CEO of Simmons First National Corporation ( NASDAQ:SFNC ) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Simmons First National

How Does George Makris’s Compensation Compare With Similar Sized Companies?

Our data indicates that Simmons First National Corporation is worth US$2.5b, and total annual CEO compensation is US$2.3m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$688k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$4.7m.

A first glance this seems like a real positive for shareholders, since George Makris is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Simmons First National has changed from year to year.

NasdaqGS:SFNC CEO Compensation, February 19th 2019

Is Simmons First National Corporation Growing?

On average over the last three years, Simmons First National Corporation has grown earnings per share (EPS) by 9.6% each year (using a line of best fit). In the last year, its revenue is up 55%.

I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future .

Has Simmons First National Corporation Been A Good Investment?

I think that the total shareholder return of 36%, over three years, would leave most Simmons First National Corporation shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

It looks like Simmons First National Corporation pays its CEO less than similar sized companies.

It’s well worth noting that while George Makris is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Simmons First National (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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. On rare occasion, data errors may occur. Thank you for reading.