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Is BankFinancial Corporation (NASDAQ:BFIN) Overpaying Its CEO?

Hector Vargas

F. Gasior became the CEO of BankFinancial Corporation (NASDAQ:BFIN) in 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for BankFinancial

How Does F. Gasior’s Compensation Compare With Similar Sized Companies?

According to our data, BankFinancial Corporation has a market capitalization of US$242m, and pays its CEO total annual compensation worth US$615k. (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$413k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$954k.

Most shareholders would consider it a positive that F. Gasior takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at BankFinancial has changed from year to year.

NASDAQGS:BFIN CEO Compensation January 25th 19

Is BankFinancial Corporation Growing?

On average over the last three years, BankFinancial Corporation has grown earnings per share (EPS) by 32% each year (using a line of best fit). Its revenue is up 18% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has BankFinancial Corporation Been A Good Investment?

BankFinancial Corporation has served shareholders reasonably well, with a total return of 27% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

It appears that BankFinancial Corporation remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The total shareholder return might not be amazing, but that doesn’t mean that F. Gasior is paid too much.

Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it’s even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling BankFinancial shares (free trial).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

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.