Brian Young became the CEO of United Bancshares Inc (NASDAQ:UBOH) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.
How Does Brian Young’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that United Bancshares Inc has a market cap of US$75m, and is paying total annual CEO compensation of US$431k. That’s a modest increase of 1.6% on the prior year year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$293k.
Thus we can conclude that Brian Young receives more in total compensation than the median of a group of companies in the same market, and of similar size to United Bancshares Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at United Bancshares, below.
Is United Bancshares Inc Growing?
Over the last three years United Bancshares Inc has shrunk its earnings per share by an average of 3.7% per year. In the last year, its revenue is up 39%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has United Bancshares Inc Been A Good Investment?
Most shareholders would probably be pleased with United Bancshares Inc for providing a total return of 44% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount United Bancshares Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling United Bancshares Inc shares (free trial).
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 email@example.com.