We Think Southside Bancshares, Inc.'s (NYSE:SBSI) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Southside Bancshares to hold its Annual General Meeting on 14th of May
• CEO Lee Gibson's total compensation includes salary of US$845.0k
• The overall pay is comparable to the industry average
• Over the past three years, Southside Bancshares' EPS fell by 3.1% and over the past three years, the total loss to shareholders 17%

We check all companies for important risks. See what we found for Southside Bancshares in our free report.

Shareholders will probably not be too impressed with the underwhelming results at Southside Bancshares, Inc. (NYSE:SBSI) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 14th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Southside Bancshares

How Does Total Compensation For Lee Gibson Compare With Other Companies In The Industry?

According to our data, Southside Bancshares, Inc. has a market capitalization of US$863m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2024. We note that's a small decrease of 6.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$845k.

For comparison, other companies in the American Banks industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$1.8m. So it looks like Southside Bancshares compensates Lee Gibson in line with the median for the industry. Moreover, Lee Gibson also holds US$2.5m worth of Southside Bancshares stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$845k	US$810k	42%
Other	US$1.1m	US$1.3m	58%
Total Compensation	US$2.0m	US$2.1m	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. Southside Bancshares is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Southside Bancshares, Inc.'s Growth Numbers

Southside Bancshares, Inc. has reduced its earnings per share by 3.1% a year over the last three years. In the last year, its revenue is up 6.5%.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Southside Bancshares, Inc. Been A Good Investment?

Since shareholders would have lost about 17% over three years, some Southside Bancshares, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

So you may want to check if insiders are buying Southside Bancshares shares with their own money (free access).

Switching gears from Southside Bancshares, 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.

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.