Is Veritex Holdings, Inc.’s (NASDAQ:VBTX) CEO Pay Fair?

Charles Holland has been the CEO of Veritex Holdings, Inc. (NASDAQ:VBTX) since 2009. 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. 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.

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How Does Charles Holland’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Veritex Holdings, Inc. has a market cap of US$1.3b, and is paying total annual CEO compensation of US$891k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$375k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.5m.

Most shareholders would consider it a positive that Charles Holland takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business. So this free report on the analyst consensus forecasts could help you make a master move on this stock.

You can see, below, how CEO compensation at Veritex Holdings has changed over time.

NasdaqGM:VBTX CEO Compensation January 23rd 19
NasdaqGM:VBTX CEO Compensation January 23rd 19

Is Veritex Holdings, Inc. Growing?

Over the last three years Veritex Holdings, Inc. has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). In the last year, its revenue is up 99%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.

Has Veritex Holdings, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Veritex Holdings, Inc. for providing a total return of 64% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

It appears that Veritex Holdings, Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Charles Holland 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. Shareholders may want to check for free if Veritex Holdings insiders are buying or selling shares.

If you want to buy a stock that is better than Veritex Holdings, this free list 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.