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This article will reflect on the compensation paid to Chip Hasselbring who has served as CEO of IF Bancorp, Inc. (NASDAQ:IROQ) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Chip Hasselbring Compare With Other Companies In The Industry?
According to our data, IF Bancorp, Inc. has a market capitalization of US$69m, and paid its CEO total annual compensation worth US$618k over the year to June 2020. We note that's an increase of 13% above last year. We note that the salary portion, which stands at US$355.9k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$524k. This suggests that IF Bancorp remunerates its CEO largely in line with the industry average. What's more, Chip Hasselbring holds US$990k worth of shares in the company in their own name.
On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. There isn't a significant difference between IF Bancorp and the broader market, in terms of salary allocation in the overall compensation package. 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 IF Bancorp, Inc.'s Growth Numbers
Over the past three years, IF Bancorp, Inc. has seen its earnings per share (EPS) grow by 15% per year. Its revenue is up 8.0% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 IF Bancorp, Inc. Been A Good Investment?
With a total shareholder return of 10% over three years, IF Bancorp, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As previously discussed, Chip is compensated close to the median for companies of its size, and which belong to the same industry. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for IF Bancorp that investors should think about before committing capital to this stock.
Switching gears from IF Bancorp, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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