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In 2009 Bill Marsh was appointed CEO of Emclaire Financial Corp. (NASDAQ:EMCF). 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bill Marsh’s Compensation Compare With Similar Sized Companies?
Our data indicates that Emclaire Financial Corp. is worth US$83m, and total annual CEO compensation is US$648k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$346k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.
It would therefore appear that Emclaire Financial Corp. pays Bill Marsh more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Emclaire Financial has changed from year to year.
Is Emclaire Financial Corp. Growing?
Emclaire Financial Corp. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 15%.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. Although we’ll stop short of calling the stock a top performer, we think the company has potential. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Emclaire Financial Corp. Been A Good Investment?
Boasting a total shareholder return of 51% over three years, Emclaire Financial Corp. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Emclaire Financial Corp. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Emclaire Financial shares with their own money (free access).
Important note: Emclaire Financial may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 firstname.lastname@example.org.