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Does Timberland Bancorp, Inc.'s (NASDAQ:TSBK) CEO Pay Compare Well With Peers?

Simply Wall St

Mike Sand became the CEO of Timberland Bancorp, Inc. (NASDAQ:TSBK) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Timberland Bancorp

How Does Mike Sand's Compensation Compare With Similar Sized Companies?

According to our data, Timberland Bancorp, Inc. has a market capitalization of US$220m, and paid its CEO total annual compensation worth US$460k over the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$335k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Timberland Bancorp, below.

NasdaqGM:TSBK CEO Compensation, October 10th 2019

Is Timberland Bancorp, Inc. Growing?

Over the last three years Timberland Bancorp, Inc. has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). Its revenue is up 21% over last year.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Timberland Bancorp, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Timberland Bancorp, Inc. for providing a total return of 80% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It looks like Timberland Bancorp, Inc. pays its CEO less than similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Mike Sand deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Timberland Bancorp (free visualization of insider trades).

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.