Is Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Excessively Paying Its CEO?

In 1999 Greg Steffens was appointed CEO of Southern Missouri Bancorp, Inc. (NASDAQ:SMBC). 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Southern Missouri Bancorp

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

Our data indicates that Southern Missouri Bancorp, Inc. is worth US$320m, and total annual CEO compensation is US$530k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$363k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group 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. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Southern Missouri Bancorp has changed over time.

NasdaqGM:SMBC CEO Compensation, July 29th 2019
NasdaqGM:SMBC CEO Compensation, July 29th 2019

Is Southern Missouri Bancorp, Inc. Growing?

Over the last three years Southern Missouri Bancorp, Inc. has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

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

I think that the total shareholder return of 47%, over three years, would leave most Southern Missouri Bancorp, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

It looks like Southern Missouri Bancorp, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Greg Steffens 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. So you may want to check if insiders are buying Southern Missouri Bancorp shares with their own money (free access).

If you want to buy a stock that is better than Southern Missouri 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.