Chip Hasselbring became the CEO of IF Bancorp, Inc. (NASDAQ:IROQ) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Chip Hasselbring's Compensation Compare With Similar Sized Companies?
According to our data, IF Bancorp, Inc. has a market capitalization of US$73m, and pays its CEO total annual compensation worth US$424k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$308k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$493k.
So Chip Hasselbring is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at IF Bancorp has changed over time.
Is IF Bancorp, Inc. Growing?
On average over the last three years, IF Bancorp, Inc. has shrunk earnings per share by 19% each year (measured with a line of best fit). It achieved revenue growth of 3.6% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has IF Bancorp, Inc. Been A Good Investment?
IF Bancorp, Inc. has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Chip Hasselbring is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at IF Bancorp.
If you want to buy a stock that is better than IF Bancorp, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.