What We Learned About First Savings Financial Group's (NASDAQ:FSFG) CEO Compensation
This article will reflect on the compensation paid to Larry Myers who has served as CEO of First Savings Financial Group, Inc. (NASDAQ:FSFG) since 2008. 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 First Savings Financial Group
How Does Total Compensation For Larry Myers Compare With Other Companies In The Industry?
Our data indicates that First Savings Financial Group, Inc. has a market capitalization of US$152m, and total annual CEO compensation was reported as US$826k for the year to September 2020. Notably, that's an increase of 20% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$288k.
For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$785k. So it looks like First Savings Financial Group compensates Larry Myers in line with the median for the industry. Furthermore, Larry Myers directly owns US$8.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$288k | US$276k | 35% |
Other | US$539k | US$413k | 65% |
Total Compensation | US$826k | US$690k | 100% |
Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. It's interesting to note that First Savings Financial Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at First Savings Financial Group, Inc.'s Growth Numbers
Over the past three years, First Savings Financial Group, Inc. has seen its earnings per share (EPS) grow by 53% per year. It achieved revenue growth of 111% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has First Savings Financial Group, Inc. Been A Good Investment?
Given the total shareholder loss of 1.3% over three years, many shareholders in First Savings Financial Group, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
As we noted earlier, First Savings Financial Group pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which are concerning) in First Savings Financial Group we think you should know about.
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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