Is Atlantic Capital Bancshares, Inc.’s (NASDAQ:ACBI) CEO Pay Justified?

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Doug Williams has been the CEO of Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) since 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Atlantic Capital Bancshares

How Does Doug Williams’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Atlantic Capital Bancshares, Inc. has a market cap of US$415m, and is paying total annual CEO compensation of US$1.3m. (This figure is for the year to December 2018). Notably, that’s an increase of 32% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$448k. 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.

So Doug Williams receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Atlantic Capital Bancshares has changed from year to year.

NasdaqGS:ACBI CEO Compensation, May 29th 2019
NasdaqGS:ACBI CEO Compensation, May 29th 2019

Is Atlantic Capital Bancshares, Inc. Growing?

On average over the last three years, Atlantic Capital Bancshares, Inc. has grown earnings per share (EPS) by 52% each year (using a line of best fit). In the last year, its revenue is up 25%.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.

Has Atlantic Capital Bancshares, Inc. Been A Good Investment?

Atlantic Capital Bancshares, Inc. has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Doug Williams is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Atlantic Capital Bancshares (free visualization of insider trades).

If you want to buy a stock that is better than Atlantic Capital Bancshares, 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.