Here's Why Southern Missouri Bancorp, Inc.'s (NASDAQ:SMBC) CEO Might See A Pay Rise Soon

Key Insights

• Southern Missouri Bancorp will host its Annual General Meeting on 30th of October
• CEO Greg Steffens' total compensation includes salary of US$440.4k
• The overall pay is 53% below the industry average
• Southern Missouri Bancorp's EPS grew by 4.7% over the past three years while total shareholder return over the past three years was 70%

The decent performance at Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) recently will please most shareholders as they go into the AGM coming up on 30th of October. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Southern Missouri Bancorp

How Does Total Compensation For Greg Steffens Compare With Other Companies In The Industry?

At the time of writing, our data shows that Southern Missouri Bancorp, Inc. has a market capitalization of US$448m, and reported total annual CEO compensation of US$661k for the year to June 2023. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at US$440.4k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the American Banks industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.4m. That is to say, Greg Steffens is paid under the industry median. Moreover, Greg Steffens also holds US$11m worth of Southern Missouri Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$440k	US$440k	67%
Other	US$221k	US$212k	33%
Total Compensation	US$661k	US$652k	100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. It's interesting to note that Southern Missouri Bancorp pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Southern Missouri Bancorp, Inc.'s Growth

Over the past three years, Southern Missouri Bancorp, Inc. has seen its earnings per share (EPS) grow by 4.7% per year. It achieved revenue growth of 10% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Southern Missouri Bancorp, Inc. Been A Good Investment?

We think that the total shareholder return of 70%, over three years, would leave most Southern Missouri Bancorp, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Southern Missouri Bancorp that investors should think about before committing capital to this stock.

Important note: Southern Missouri Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.