As many shareholders of First Busey Corporation (NASDAQ:BUSE) will be aware, they have not made a gain on their investment in the past three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 19 May 2021. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
Comparing First Busey Corporation's CEO Compensation With the industry
Our data indicates that First Busey Corporation has a market capitalization of US$1.3b, and total annual CEO compensation was reported as US$2.4m for the year to December 2020. We note that's an increase of 12% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$675k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$2.4m. So it looks like First Busey compensates Van Dukeman in line with the median for the industry. Moreover, Van Dukeman also holds US$9.0m worth of First Busey stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that First Busey allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
First Busey Corporation's Growth
First Busey Corporation's earnings per share (EPS) grew 14% per year over the last three years. It achieved revenue growth of 1.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 First Busey Corporation Been A Good Investment?
Given the total shareholder loss of 10% over three years, many shareholders in First Busey Corporation are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
Shareholders may want to check for free if First Busey insiders are buying or selling shares.
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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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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