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Ron Haan has been the CEO of Macatawa Bank Corporation (NASDAQ:MCBC) since 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Ron Haan's Compensation Compare With Similar Sized Companies?
Our data indicates that Macatawa Bank Corporation is worth US$385m, and total annual CEO compensation was reported as US$557k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$450k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Macatawa Bank, below.
Is Macatawa Bank Corporation Growing?
On average over the last three years, Macatawa Bank Corporation has grown earnings per share (EPS) by 25% each year (using a line of best fit). Its revenue is up 8.8% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Macatawa Bank Corporation Been A Good Investment?
With a total shareholder return of 16% over three years, Macatawa Bank Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It appears that Macatawa Bank Corporation remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Ron Haan is overcompensated. It's good to see reasonable payment of the CEO, even while the business improves. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Macatawa Bank.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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