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Does MidWestOne Financial Group, Inc.'s (NASDAQ:MOFG) CEO Pay Reflect Performance?

Simply Wall St

Charlie Funk has been the CEO of MidWestOne Financial Group, Inc. (NASDAQ:MOFG) since 2008. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for MidWestOne Financial Group

How Does Charlie Funk's Compensation Compare With Similar Sized Companies?

According to our data, MidWestOne Financial Group, Inc. has a market capitalization of US$510m, and pays its CEO total annual compensation worth US$774k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$437k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.

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 MidWestOne Financial Group, below.

NasdaqGS:MOFG CEO Compensation, September 16th 2019

Is MidWestOne Financial Group, Inc. Growing?

Over the last three years MidWestOne Financial Group, Inc. has grown its earnings per share (EPS) by an average of 4.3% per year (using a line of best fit). In the last year, its revenue is up 21%.

I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.

Has MidWestOne Financial Group, Inc. Been A Good Investment?

MidWestOne Financial Group, Inc. has served shareholders reasonably well, with a total return of 11% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

MidWestOne Financial Group, Inc. is currently paying its CEO below what is normal for companies of its size.

Charlie Funk is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MidWestOne Financial Group.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.