Stock Analysis

What Can We Make Of Civista Bancshares' (NASDAQ:CIVB) CEO Compensation?

  •  Updated
NasdaqCM:CIVB
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This article will reflect on the compensation paid to Dennis Shaffer who has served as CEO of Civista Bancshares, Inc. (NASDAQ:CIVB) since 2018. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Civista Bancshares

Comparing Civista Bancshares, Inc.'s CEO Compensation With the industry

Our data indicates that Civista Bancshares, Inc. has a market capitalization of US$276m, and total annual CEO compensation was reported as US$660k for the year to December 2019. Notably, that's an increase of 23% over the year before. Notably, the salary which is US$407.7k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$791k. So it looks like Civista Bancshares compensates Dennis Shaffer in line with the median for the industry. What's more, Dennis Shaffer holds US$261k worth of shares in the company in their own name.

Component20192018Proportion (2019)
Salary US$408k US$350k 62%
Other US$252k US$187k 38%
Total CompensationUS$660k US$537k100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Civista Bancshares is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
NasdaqCM:CIVB CEO Compensation December 16th 2020

A Look at Civista Bancshares, Inc.'s Growth Numbers

Civista Bancshares, Inc.'s earnings per share (EPS) grew 6.9% per year over the last three years. 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 the modest EPSgrowth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Civista Bancshares, Inc. Been A Good Investment?

Given the total shareholder loss of 17% over three years, many shareholders in Civista Bancshares, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Civista Bancshares pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, Civista Bancshares is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.

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. We did our research and identified 4 warning signs (and 1 which can't be ignored) in Civista Bancshares we think you should know about.

Important note: Civista Bancshares 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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