Is HomeTrust Bancshares, Inc.’s (NASDAQ:HTBI) CEO Being Overpaid?

In 2013 Dana Stonestreet was appointed CEO of HomeTrust Bancshares, Inc. (NASDAQ:HTBI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for HomeTrust Bancshares

How Does Dana Stonestreet’s Compensation Compare With Similar Sized Companies?

Our data indicates that HomeTrust Bancshares, Inc. is worth US$464m, and total annual CEO compensation is US$2.5m. (This number is for the twelve months until 2018). That’s a notable increase of 69% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$505k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.6m.

It would therefore appear that HomeTrust Bancshares, Inc. pays Dana Stonestreet more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at HomeTrust Bancshares has changed over time.

NasdaqGS:HTBI CEO Compensation December 13th 18
NasdaqGS:HTBI CEO Compensation December 13th 18

Is HomeTrust Bancshares, Inc. Growing?

HomeTrust Bancshares, Inc. has reduced its earnings per share by an average of 9.9% a year, over the last three years. Its revenue is up 11% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has HomeTrust Bancshares, Inc. Been A Good Investment?

HomeTrust Bancshares, Inc. has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared total CEO remuneration at HomeTrust Bancshares, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

While shareholder returns are acceptable, they don’t delight. It’s also worth noting total remuneration to the CEO has increased, year on year. So you may want to delve deeper, because we don’t think the CEO pay is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at HomeTrust Bancshares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.