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Craig Dwight became the CEO of Horizon Bancorp, Inc. (NASDAQ:HBNC) in 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Craig Dwight’s Compensation Compare With Similar Sized Companies?
Our data indicates that Horizon Bancorp, Inc. is worth US$748m, and total annual CEO compensation is US$1.2m. (This is based on the year to December 2018). That’s a fairly small increase of 5.4% on year before. While we always look at total compensation first, we note that the salary component is less, at US$540k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.3m.
A first glance this seems like a real positive for shareholders, since Craig Dwight is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Horizon Bancorp has changed from year to year.
Is Horizon Bancorp, Inc. Growing?
On average over the last three years, Horizon Bancorp, Inc. has grown earnings per share (EPS) by 20% each year (using a line of best fit). It achieved revenue growth of 11% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Horizon Bancorp, Inc. Been A Good Investment?
Boasting a total shareholder return of 61% over three years, Horizon Bancorp, Inc. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Horizon Bancorp, Inc. remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Craig Dwight deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Horizon Bancorp shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.