Here's Why Great Southern Bancorp, Inc.'s (NASDAQ:GSBC) CEO Compensation Is The Least Of Shareholders' Concerns

Under the guidance of CEO Joe Turner, Great Southern Bancorp, Inc. (NASDAQ:GSBC) 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 12 May 2021. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Great Southern Bancorp

How Does Total Compensation For Joe Turner Compare With Other Companies In The Industry?

According to our data, Great Southern Bancorp, Inc. has a market capitalization of US$784m, and paid its CEO total annual compensation worth US$1.5m over the year to December 2020. We note that's a small decrease of 3.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$380k.

On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$1.6m. From this we gather that Joe Turner is paid around the median for CEOs in the industry. What's more, Joe Turner holds US$9.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$380k	US$380k	25%
Other	US$1.1m	US$1.2m	75%
Total Compensation	US$1.5m	US$1.6m	100%

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that Great Southern Bancorp 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.

A Look at Great Southern Bancorp, Inc.'s Growth Numbers

Over the past three years, Great Southern Bancorp, Inc. has seen its earnings per share (EPS) grow by 6.1% per year. Revenue was pretty flat on last year.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Great Southern Bancorp, Inc. Been A Good Investment?

Great Southern Bancorp, Inc. has served shareholders reasonably well, with a total return of 14% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Great Southern Bancorp that investors should look into moving forward.

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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