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David Becker has been the CEO of First Internet Bancorp (NASDAQ:INBK) since 2005. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
How Does David Becker’s Compensation Compare With Similar Sized Companies?
Our data indicates that First Internet Bancorp is worth US$198m, and total annual CEO compensation is US$1.5m. (This number is for the twelve months until December 2018). That’s just a smallish increase of 2.2% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$700k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
It would therefore appear that First Internet Bancorp pays David Becker 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at First Internet Bancorp, below.
Is First Internet Bancorp Growing?
First Internet Bancorp has increased its earnings per share (EPS) by an average of 3.5% a year, over the last three years (using a line of best fit). Its revenue is up 4.9% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has First Internet Bancorp Been A Good Investment?
With a three year total loss of 15%, First Internet Bancorp would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at First Internet Bancorp with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Internet Bancorp.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 firstname.lastname@example.org. 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.