Dana Stonestreet has been the CEO of HomeTrust Bancshares, Inc. (NASDAQ:HTBI) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether HomeTrust Bancshares pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing HomeTrust Bancshares, Inc.'s CEO Compensation With the industry
According to our data, HomeTrust Bancshares, Inc. has a market capitalization of US$330m, and paid its CEO total annual compensation worth US$1.0m over the year to June 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$531.7k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$1.2m. From this we gather that Dana Stonestreet is paid around the median for CEOs in the industry. Moreover, Dana Stonestreet also holds US$5.3m worth of HomeTrust Bancshares stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. HomeTrust Bancshares is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
HomeTrust Bancshares, Inc.'s Growth
HomeTrust Bancshares, Inc.'s earnings per share (EPS) grew 16% per year over the last three years. It saw its revenue drop 2.0% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 HomeTrust Bancshares, Inc. Been A Good Investment?
Given the total shareholder loss of 19% over three years, many shareholders in HomeTrust Bancshares, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As previously discussed, Dana is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But on the bright side, EPS growth is positive over the same period. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for HomeTrust Bancshares you should be aware of, and 1 of them is significant.
Switching gears from HomeTrust Bancshares, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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. 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.
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