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Does First Savings Financial Group, Inc.'s (NASDAQ:FSFG) CEO Pay Reflect Performance?

Simply Wall St

In 2008 Larry Myers was appointed CEO of First Savings Financial Group, Inc. (NASDAQ:FSFG). 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for First Savings Financial Group

How Does Larry Myers's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that First Savings Financial Group, Inc. has a market cap of US$137m, and is paying total annual CEO compensation of US$1.7m. (This number is for the twelve months until September 2018). While we always look at total compensation first, we note that the salary component is less, at US$269k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$492k.

Thus we can conclude that Larry Myers receives more in total compensation than the median of a group of companies in the same market, and of similar size to First Savings Financial Group, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at First Savings Financial Group has changed over time.

NasdaqCM:FSFG CEO Compensation, September 3rd 2019

Is First Savings Financial Group, Inc. Growing?

First Savings Financial Group, Inc. has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). Its revenue is up 56% over last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.

Has First Savings Financial Group, Inc. Been A Good Investment?

Boasting a total shareholder return of 72% over three years, First Savings Financial Group, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at First Savings Financial Group, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if First Savings Financial Group insiders are buying or selling shares.

Important note: First Savings Financial Group 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.

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 editorial-team@simplywallst.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.