Bill Hieb has been the CEO of DNB Financial Corporation (NASDAQ:DNBF) since 2016. 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. 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 Bill Hieb’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that DNB Financial Corporation has a market cap of US$169m, and is paying total annual CEO compensation of US$582k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$301k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$930k.
A first glance this seems like a real positive for shareholders, since Bill Hieb is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at DNB Financial, below.
Is DNB Financial Corporation Growing?
On average over the last three years, DNB Financial Corporation has grown earnings per share (EPS) by 7.9% each year (using a line of best fit). In the last year, its revenue changed by just -0.9%.
I generally like to see a little revenue growth, but it is good to see EPS growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has DNB Financial Corporation Been A Good Investment?
Most shareholders would probably be pleased with DNB Financial Corporation for providing a total return of 39% over three years. 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.
DNB Financial Corporation is currently paying its CEO below what is normal for companies of its size.
Bill Hieb is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling DNB Financial (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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