Doug Williams became the CEO of Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Doug Williams’s Compensation Compare With Similar Sized Companies?
According to our data, Atlantic Capital Bancshares, Inc. has a market capitalization of US$485m, and pays its CEO total annual compensation worth US$992k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$437k. 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$1.5m.
Most shareholders would consider it a positive that Doug Williams takes less compensation than the CEOs of most similar size companies, leaving more 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 Atlantic Capital Bancshares, below.
Is Atlantic Capital Bancshares, Inc. Growing?
Over the last three years Atlantic Capital Bancshares, Inc. has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). In the last year, its revenue is down -10%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Atlantic Capital Bancshares, Inc. Been A Good Investment?
I think that the total shareholder return of 46%, over three years, would leave most Atlantic Capital Bancshares, Inc. 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.
It looks like Atlantic Capital Bancshares, 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 Doug Williams deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Atlantic Capital Bancshares shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.