Is MSB Financial Corp.'s (NASDAQ:MSBF) CEO Overpaid Relative To Its Peers?
In 2014 Michael Shriner was appointed CEO of MSB Financial Corp. (NASDAQ:MSBF). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for MSB Financial
How Does Michael Shriner's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MSB Financial Corp. has a market cap of US$78m, and is paying total annual CEO compensation of US$445k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$323k. 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$474k.
So Michael Shriner is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at MSB Financial has changed from year to year.
Is MSB Financial Corp. Growing?
Over the last three years MSB Financial Corp. has grown its earnings per share (EPS) by an average of 63% per year (using a line of best fit). In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has MSB Financial Corp. Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most MSB Financial Corp. shareholders smiling. 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.
In Summary...
Michael Shriner is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if MSB Financial insiders are buying or selling shares.
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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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.
