Is Horizon Bancorp Inc’s (NASDAQ:HBNC) CEO Pay Justified?

Craig Dwight became the CEO of Horizon Bancorp Inc (NASDAQ:HBNC) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Horizon Bancorp

How Does Craig Dwight’s Compensation Compare With Similar Sized Companies?

According to our data, Horizon Bancorp Inc has a market capitalization of US$662m, and pays its CEO total annual compensation worth US$1m. That’s a notable increase of 22% on last year. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2m.

A first glance this seems like a real positive for shareholders, since Craig Dwight is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Horizon Bancorp has changed over time.

NasdaqGS:HBNC CEO Compensation November 8th 18
NasdaqGS:HBNC CEO Compensation November 8th 18

Is Horizon Bancorp Inc Growing?

Horizon Bancorp Inc has increased its earnings per share (EPS) by an average of 13% a year, over the last three years It achieved revenue growth of 22% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Horizon Bancorp Inc Been A Good Investment?

I think that the total shareholder return of 51%, over three years, would leave most Horizon Bancorp Inc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

It looks like Horizon Bancorp Inc pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking 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 Inc shares with their own money (free access).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.