Is Peoples Bancorp of North Carolina Inc's (NASDAQ:PEBK) CEO Salary Justified?

In 2012 Lance Sellers was appointed CEO of Peoples Bancorp of North Carolina Inc (NASDAQ:PEBK). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Peoples Bancorp of North Carolina

How Does Lance Sellers's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Peoples Bancorp of North Carolina Inc has a market cap of US$171m, and is paying total annual CEO compensation of US$466k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$319k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$941k.

A first glance this seems like a real positive for shareholders, since Lance Sellers is paid less than the average 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. Take a look at Peoples Bancorp of North Carolina's growth trajectory by checking out this more detailed historical graph of earnings, revenue and cash flow.

You can see a visual representation of the CEO compensation at Peoples Bancorp of North Carolina, below.

Is Peoples Bancorp of North Carolina Inc Growing?

Over the last three years Peoples Bancorp of North Carolina Inc has grown its earnings per share (EPS) by an average of 7.9% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing.

Has Peoples Bancorp of North Carolina Inc Been A Good Investment?

Most shareholders would probably be pleased with Peoples Bancorp of North Carolina Inc for providing a total return of 65% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary...

It looks like Peoples Bancorp of North Carolina Inc pays its CEO less than similar sized companies.

Lance Sellers is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Peoples Bancorp of North Carolina (free visualization of insider trades).

If you want to buy a stock that is better than Peoples Bancorp of North Carolina, this freelist of high return, low debt companies is a great place to look.

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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.