Should You Worry About TriCo Bancshares’s (NASDAQ:TCBK) CEO Pay Cheque?

Rick Smith has been the CEO of TriCo Bancshares (NASDAQ:TCBK) since 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

See our latest analysis for TriCo Bancshares

How Does Rick Smith’s Compensation Compare With Similar Sized Companies?

Our data indicates that TriCo Bancshares is worth US$1.2b, and total annual CEO compensation was reported as US$3.2m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$715k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.5m.

That means Rick Smith receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at TriCo Bancshares, below.

NasdaqGS:TCBK CEO Compensation, January 22nd 2020
NasdaqGS:TCBK CEO Compensation, January 22nd 2020

Is TriCo Bancshares Growing?

On average over the last three years, TriCo Bancshares has grown earnings per share (EPS) by 14% each year (using a line of best fit). It achieved revenue growth of 28% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has TriCo Bancshares Been A Good Investment?

TriCo Bancshares has served shareholders reasonably well, with a total return of 16% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

Rick Smith is paid around what is normal the leaders of comparable size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling TriCo Bancshares shares (free trial).

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.