In 2005 Shaun Burke was appointed CEO of Guaranty Federal Bancshares, Inc. (NASDAQ:GFED). 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. 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?
According to our data, Guaranty Federal Bancshares, Inc. has a market capitalization of US$110m, and paid its CEO total annual compensation worth US$439k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, 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$526k.
So Shaun Burke is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Guaranty Federal Bancshares has changed over time.
Is Guaranty Federal Bancshares, Inc. Growing?
Guaranty Federal Bancshares, Inc. has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Guaranty Federal Bancshares, Inc. Been A Good Investment?
Guaranty Federal Bancshares, Inc. has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Remuneration for Shaun Burke is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. 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).
Important note: Guaranty Federal Bancshares 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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