Does United Bancshares' (NASDAQ:UBOH) CEO Salary Compare Well With The Performance Of The Company?
Brian Young has been the CEO of United Bancshares, Inc. (NASDAQ:UBOH) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for United Bancshares
How Does Total Compensation For Brian Young Compare With Other Companies In The Industry?
Our data indicates that United Bancshares, Inc. has a market capitalization of US$80m, and total annual CEO compensation was reported as US$544k for the year to December 2019. That's a fairly small increase of 6.7% over the previous year. In particular, the salary of US$345.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$624k. From this we gather that Brian Young is paid around the median for CEOs in the industry. Moreover, Brian Young also holds US$759k worth of United Bancshares stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$345k | US$326k | 63% |
Other | US$199k | US$184k | 37% |
Total Compensation | US$544k | US$510k | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that United Bancshares pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
United Bancshares, Inc.'s Growth
United Bancshares, Inc. has seen its earnings per share (EPS) increase by 53% a year over the past three years. Its revenue is up 31% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has United Bancshares, Inc. Been A Good Investment?
United Bancshares, Inc. has served shareholders reasonably well, with a total return of 18% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, United Bancshares, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for United Bancshares that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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