In 1995 Randy Newman was appointed CEO of Alerus Financial Corporation (NASDAQ:ALRS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Randy Newman's Compensation Compare With Similar Sized Companies?
According to our data, Alerus Financial Corporation has a market capitalization of US$386m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$550k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
So Randy Newman is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Alerus Financial, below.
Is Alerus Financial Corporation Growing?
Over the last three years Alerus Financial Corporation has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). It achieved revenue growth of 6.9% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Alerus Financial Corporation Been A Good Investment?
Boasting a total shareholder return of 48% over three years, Alerus Financial Corporation has done well by shareholders. 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.
Randy Newman is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alerus Financial (free visualization of insider trades).
If you want to buy a stock that is better than Alerus Financial, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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