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Performance at TriCo Bancshares (NASDAQ:TCBK) has been reasonably good and CEO Rick Smith has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27 May 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for TriCo Bancshares
How Does Total Compensation For Rick Smith Compare With Other Companies In The Industry?
According to our data, TriCo Bancshares has a market capitalization of US$1.4b, and paid its CEO total annual compensation worth US$2.8m over the year to December 2020. That's a notable decrease of 40% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$825k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$2.4m. This suggests that TriCo Bancshares remunerates its CEO largely in line with the industry average. Furthermore, Rick Smith directly owns US$11m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$825k | US$782k | 29% |
| Other | US$2.0m | US$3.9m | 71% |
| Total Compensation | US$2.8m | US$4.7m | 100% |
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. TriCo Bancshares sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
TriCo Bancshares' Growth
TriCo Bancshares has seen its earnings per share (EPS) increase by 14% a year over the past three years. In the last year, its revenue is down 3.3%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has TriCo Bancshares Been A Good Investment?
TriCo Bancshares has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.