Most Shareholders Will Probably Find That The CEO Compensation For Banner Corporation (NASDAQ:BANR) Is Reasonable

Under the guidance of CEO Mark Grescovich, Banner Corporation (NASDAQ:BANR) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28 April 2021. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Banner

Comparing Banner Corporation's CEO Compensation With the industry

According to our data, Banner Corporation has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$2.7m over the year to December 2020. We note that's an increase of 17% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$839k.

For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$2.4m. So it looks like Banner compensates Mark Grescovich in line with the median for the industry. Moreover, Mark Grescovich also holds US$5.9m worth of Banner stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$839k	US$815k	31%
Other	US$1.8m	US$1.5m	69%
Total Compensation	US$2.7m	US$2.3m	100%

Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. Banner sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Banner Corporation's Growth

Banner Corporation's earnings per share (EPS) grew 21% per year over the last three years. It saw its revenue drop 5.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Banner Corporation Been A Good Investment?

Banner Corporation has not done too badly by shareholders, with a total return of 6.0%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Banner that you should be aware of before investing.

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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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