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In 2009 Pete Johnson was appointed CEO of Eagle Bancorp Montana, Inc. (NASDAQ:EBMT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Pete Johnson's Compensation Compare With Similar Sized Companies?
According to our data, Eagle Bancorp Montana, Inc. has a market capitalization of US$89m, and pays its CEO total annual compensation worth US$497k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$275k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$461k.
So Pete Johnson is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Eagle Bancorp Montana has changed from year to year.
Is Eagle Bancorp Montana, Inc. Growing?
On average over the last three years, Eagle Bancorp Montana, Inc. has shrunk earnings per share by 6.2% each year (measured with a line of best fit). It achieved revenue growth of 22% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Eagle Bancorp Montana, Inc. Been A Good Investment?
I think that the total shareholder return of 38%, over three years, would leave most Eagle Bancorp Montana, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Pete Johnson is close enough to the median pay for a CEO of a similar sized company .
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Whatever your view on compensation, you might want to check if insiders are buying or selling Eagle Bancorp Montana shares (free trial).
If you want to buy a stock that is better than Eagle Bancorp Montana, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.