It's Unlikely That Capital City Bank Group, Inc.'s (NASDAQ:CCBG) CEO Will See A Huge Pay Rise This Year

Performance at Capital City Bank Group, Inc. (NASDAQ:CCBG) has been reasonably good and CEO Bill Smith has done a decent job of steering the company in the right direction. 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 27 April 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Capital City Bank Group

Comparing Capital City Bank Group, Inc.'s CEO Compensation With the industry

Our data indicates that Capital City Bank Group, Inc. has a market capitalization of US$429m, and total annual CEO compensation was reported as US$2.6m for the year to December 2020. We note that's an increase of 35% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$430k.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.1m. This suggests that Bill Smith is paid more than the median for the industry. Furthermore, Bill Smith directly owns US$72m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$430k	US$420k	16%
Other	US$2.2m	US$1.5m	84%
Total Compensation	US$2.6m	US$2.0m	100%

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. Capital City Bank Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Capital City Bank Group, Inc.'s Growth Numbers

Over the past three years, Capital City Bank Group, Inc. has seen its earnings per share (EPS) grow by 43% per year. Its revenue is up 31% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Capital City Bank Group, Inc. Been A Good Investment?

With a total shareholder return of 8.8% over three years, Capital City Bank Group, Inc. has done okay by shareholders, but there's always room for improvement. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Capital City Bank Group (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Capital City Bank Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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