Is Seacoast Banking Corporation of Florida’s (NASDAQ:SBCF) CEO Overpaid Relative To Its Peers?

In 1998 Denny Hudson was appointed CEO of Seacoast Banking Corporation of Florida (NASDAQ:SBCF). 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Seacoast Banking of Florida

How Does Denny Hudson’s Compensation Compare With Similar Sized Companies?

Our data indicates that Seacoast Banking Corporation of Florida is worth US$1.2b, and total annual CEO compensation is US$1.5m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$588k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.6m.

A first glance this seems like a real positive for shareholders, since Denny Hudson 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. So this free report on the analyst consensus forecasts could help you make a master move on this stock.

The graphic below shows how CEO compensation at Seacoast Banking of Florida has changed from year to year.

NasdaqGS:SBCF CEO Compensation December 20th 18
NasdaqGS:SBCF CEO Compensation December 20th 18

Is Seacoast Banking Corporation of Florida Growing?

On average over the last three years, Seacoast Banking Corporation of Florida has grown earnings per share (EPS) by 34% each year. It achieved revenue growth of 25% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

Has Seacoast Banking Corporation of Florida Been A Good Investment?

Boasting a total shareholder return of 60% over three years, Seacoast Banking Corporation of Florida has done well by shareholders. 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 Seacoast Banking Corporation of Florida 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 pleasing shareholder returns are the cherry on top; you might even consider that Denny Hudson deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Seacoast Banking of Florida shares (free trial).

Important note: Seacoast Banking of Florida may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.