It's Unlikely That The CEO Of Great Southern Bancorp, Inc. (NASDAQ:GSBC) Will See A Huge Pay Rise This Year

Key Insights

• Great Southern Bancorp's Annual General Meeting to take place on 8th of May
• Salary of US$433.5k is part of CEO Joe Turner's total remuneration
• The overall pay is comparable to the industry average
• Great Southern Bancorp's three-year loss to shareholders was 0.8% while its EPS grew by 4.6% over the past three years

In the past three years, the share price of Great Southern Bancorp, Inc. (NASDAQ:GSBC) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 8th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Great Southern Bancorp

Comparing Great Southern Bancorp, Inc.'s CEO Compensation With The Industry

According to our data, Great Southern Bancorp, Inc. has a market capitalization of US$599m, and paid its CEO total annual compensation worth US$1.8m over the year to December 2023. That's a notable increase of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$433k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.4m. So it looks like Great Southern Bancorp compensates Joe Turner in line with the median for the industry. Furthermore, Joe Turner directly owns US$8.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$433k	US$414k	24%
Other	US$1.3m	US$1.2m	76%
Total Compensation	US$1.8m	US$1.6m	100%

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% 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. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Great Southern Bancorp, Inc.'s Growth

Great Southern Bancorp, Inc. has seen its earnings per share (EPS) increase by 4.6% a year over the past three years. Its revenue is down 7.8% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

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

Since shareholders would have lost about 0.8% over three years, some Great Southern Bancorp, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Great Southern Bancorp that investors should think about before committing capital to this stock.

Important note: Great Southern Bancorp 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.