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Is Emclaire Financial Corp's (NASDAQ:EMCF) CEO Overpaid Relative To Its Peers?

Simply Wall St

Bill Marsh became the CEO of Emclaire Financial Corp (NASDAQ:EMCF) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for Emclaire Financial

How Does Bill Marsh's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Emclaire Financial Corp has a market cap of US$90m, and is paying total annual CEO compensation of US$666k. (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$358k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$481k.

As you can see, Bill Marsh is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Emclaire Financial Corp is paying too much. 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 Emclaire Financial, below.

NasdaqCM:EMCF CEO Compensation, August 9th 2019
NasdaqCM:EMCF CEO Compensation, August 9th 2019

Is Emclaire Financial Corp Growing?

Emclaire Financial Corp has increased its earnings per share (EPS) by an average of 2.4% a year, over the last three years (using a line of best fit). It achieved revenue growth of 20% over the last year.

I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Emclaire Financial Corp Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Emclaire Financial Corp has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We examined the amount Emclaire Financial Corp pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Emclaire Financial shares (free trial).

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.

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.