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Does Mackinac Financial Corporation’s (NASDAQ:MFNC) CEO Pay Matter?

Paul Tobias has been the CEO of Mackinac Financial Corporation (NASDAQ:MFNC) since 2004. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Mackinac Financial

How Does Paul Tobias’s Compensation Compare With Similar Sized Companies?

Our data indicates that Mackinac Financial Corporation is worth US$167m, and total annual CEO compensation is US$502k. We note that’s an increase of 11% above last year. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$930k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Mackinac Financial, below.

NasdaqCM:MFNC CEO Compensation November 15th 18

Is Mackinac Financial Corporation Growing?

Mackinac Financial Corporation has increased its earnings per share (EPS) by an average of 3.2% a year, over the last three years In the last year, its revenue is up 15%.

I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Mackinac Financial Corporation Been A Good Investment?

Most shareholders would probably be pleased with Mackinac Financial Corporation for providing a total return of 48% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

It appears that Mackinac Financial Corporation remunerates its CEO below most similar sized companies.

It’s well worth noting that while Paul Tobias is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mackinac Financial Corporation (free visualization of insider trades).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.