Why We Think The CEO Of Triumph Bancorp, Inc. (NASDAQ:TBK) May Soon See A Pay Rise

The solid performance at Triumph Bancorp, Inc. (NASDAQ:TBK) has been impressive and shareholders will probably be pleased to know that CEO Aaron Graft has delivered. This would be kept in mind at the upcoming AGM on 27 April 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Triumph Bancorp

How Does Total Compensation For Aaron Graft Compare With Other Companies In The Industry?

At the time of writing, our data shows that Triumph Bancorp, Inc. has a market capitalization of US$2.2b, and reported total annual CEO compensation of US$1.4m for the year to December 2020. Notably, that's an increase of 15% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$650k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$2.4m. Accordingly, Triumph Bancorp pays its CEO under the industry median. What's more, Aaron Graft holds US$23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$650k	US$570k	45%
Other	US$798k	US$685k	55%
Total Compensation	US$1.4m	US$1.3m	100%

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. Although there is a difference in how total compensation is set, Triumph Bancorp more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Triumph Bancorp, Inc.'s Growth Numbers

Triumph Bancorp, Inc. has seen its earnings per share (EPS) increase by 11% a year over the past three years. It achieved revenue growth of 9.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Triumph Bancorp, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Triumph Bancorp, Inc. for providing a total return of 126% over three years. 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for Triumph Bancorp that investors should look into moving forward.

Switching gears from Triumph Bancorp, 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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