Does Southern Missouri Bancorp, Inc.’s (NASDAQ:SMBC) CEO Pay Reflect Performance?

Greg Steffens became the CEO of Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) in 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Southern Missouri Bancorp

How Does Greg Steffens’s Compensation Compare With Similar Sized Companies?

According to our data, Southern Missouri Bancorp, Inc. has a market capitalization of US$346m, and paid its CEO total annual compensation worth US$552k over the year to June 2019. That’s a modest increase of 4.1% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at US$372k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Southern Missouri Bancorp, below.

NasdaqGM:SMBC CEO Compensation, November 26th 2019
NasdaqGM:SMBC CEO Compensation, November 26th 2019

Is Southern Missouri Bancorp, Inc. Growing?

On average over the last three years, Southern Missouri Bancorp, Inc. has grown earnings per share (EPS) by 18% each year (using a line of best fit). It achieved revenue growth of 17% over the 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 decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Southern Missouri Bancorp, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Southern Missouri Bancorp, Inc. for providing a total return of 37% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Southern Missouri Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size.

Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Greg Steffens deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Southern Missouri Bancorp shares (free trial).

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

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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