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Is MainStreet Bancshares, Inc.'s (NASDAQ:MNSB) CEO Pay Fair?

Simply Wall St

Jeff Dick became the CEO of MainStreet Bancshares, Inc. (NASDAQ:MNSB) in 2016. 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.

Check out our latest analysis for MainStreet Bancshares

How Does Jeff Dick's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that MainStreet Bancshares, Inc. has a market cap of US$187m, and reported total annual CEO compensation of US$660k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$440k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.

Most shareholders would consider it a positive that Jeff Dick takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at MainStreet Bancshares, below.

NasdaqCM:MNSB CEO Compensation, December 12th 2019

Is MainStreet Bancshares, Inc. Growing?

MainStreet Bancshares, Inc. has increased its earnings per share (EPS) by an average of 26% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 52%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has MainStreet Bancshares, Inc. Been A Good Investment?

I think that the total shareholder return of 74%, over three years, would leave most MainStreet Bancshares, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It appears that MainStreet Bancshares, Inc. remunerates its CEO below most similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Jeff Dick deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MainStreet Bancshares.

Important note: MainStreet Bancshares 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.

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.

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