Larry Hueth has been the CEO of First Northwest Bancorp (NASDAQ:FNWB) since 2013. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Larry Hueth's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that First Northwest Bancorp has a market cap of US$163m, and is paying total annual CEO compensation of US$364k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$289k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
Most shareholders would consider it a positive that Larry Hueth takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at First Northwest Bancorp has changed from year to year.
Is First Northwest Bancorp Growing?
First Northwest Bancorp has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). Its revenue is up 6.0% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has First Northwest Bancorp Been A Good Investment?
First Northwest Bancorp has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
First Northwest Bancorp is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Larry Hueth is overcompensated.
It's great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Northwest Bancorp (free visualization of insider trades).
Important note: First Northwest Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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