Shareholders will be pleased by the robust performance of Bank of South Carolina Corporation (NASDAQ:BKSC) recently and this will be kept in mind in the upcoming AGM on 13 April 2021. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
How Does Total Compensation For Fleetwood Hassell Compare With Other Companies In The Industry?
According to our data, Bank of South Carolina Corporation has a market capitalization of US$121m, and paid its CEO total annual compensation worth US$347k over the year to December 2020. That's just a smallish increase of 3.8% on last year. We note that the salary portion, which stands at US$301.3k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$566k. This suggests that Fleetwood Hassell is paid below the industry median. What's more, Fleetwood Hassell holds US$3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. Bank of South Carolina pays out 87% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Bank of South Carolina Corporation's Growth Numbers
Over the past three years, Bank of South Carolina Corporation has seen its earnings per share (EPS) grow by 9.3% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Bank of South Carolina Corporation Been A Good Investment?
Most shareholders would probably be pleased with Bank of South Carolina Corporation for providing a total return of 39% over three years. 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.
Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Bank of South Carolina (1 is a bit concerning!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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