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Shaun Burke has been the CEO of Guaranty Federal Bancshares, Inc. (NASDAQ:GFED) since 2005. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Shaun Burke's Compensation Compare With Similar Sized Companies?
Our data indicates that Guaranty Federal Bancshares, Inc. is worth US$104m, and total annual CEO compensation is US$439k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$314k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$468k.
So Shaun Burke receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Guaranty Federal Bancshares has changed from year to year.
Is Guaranty Federal Bancshares, Inc. Growing?
Guaranty Federal Bancshares, Inc. has increased its earnings per share (EPS) by an average of 4.9% a year, over the last three years (using a line of best fit). It achieved revenue growth of 48% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. You might want to check this free visual report on analyst forecasts for future earnings.
Has Guaranty Federal Bancshares, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Guaranty Federal Bancshares, Inc. for providing a total return of 49% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Shaun Burke is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Guaranty Federal Bancshares (free visualization of insider trades).
If you want to buy a stock that is better than Guaranty Federal Bancshares, this free list of high return, low debt companies is a great place to look.
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 email@example.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.