Jim House became the CEO of First US Bancshares, Inc. (NASDAQ:FUSB) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Jim House’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that First US Bancshares, Inc. has a market cap of US$53m, and is paying total annual CEO compensation of US$532k. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$330k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$301k.
It would therefore appear that First US Bancshares, Inc. pays Jim House more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at First US Bancshares has changed from year to year.
Is First US Bancshares, Inc. Growing?
Over the last three years First US Bancshares, Inc. has shrunk its earnings per share by an average of 85% per year. Its revenue is up 14% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
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 First US Bancshares, Inc. Been A Good Investment?
Since shareholders would have lost about 3.6% over three years, some First US Bancshares, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount First US Bancshares, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling First US Bancshares shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.