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Shareholders will probably not be disappointed by the robust results at First Capital, Inc. (NASDAQ:FCAP) recently and they will be keeping this in mind as they go into the AGM on 26 May 2021. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.
Comparing First Capital, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that First Capital, Inc. has a market capitalization of US$149m, and reported total annual CEO compensation of US$329k for the year to December 2020. That's a notable decrease of 16% on last year. Notably, the salary which is US$240.8k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$574k. This suggests that Bill Harrod is paid below the industry median. Furthermore, Bill Harrod directly owns US$687k worth of shares in the company.
On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. First Capital pays out 73% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at First Capital, Inc.'s Growth Numbers
First Capital, Inc.'s earnings per share (EPS) grew 11% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has First Capital, Inc. Been A Good Investment?
First Capital, Inc. has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for First Capital that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. 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.
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