Chip Hasselbring became the CEO of IF Bancorp, Inc. (NASDAQ:IROQ) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Chip Hasselbring’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that IF Bancorp, Inc. has a market cap of US$73m, and is paying total annual CEO compensation of US$424k. (This is based on the year to 2018). That’s actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$308k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$307k.
As you can see, Chip Hasselbring is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean IF Bancorp, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at IF Bancorp has changed over time.
Is IF Bancorp, Inc. Growing?
On average over the last three years, IF Bancorp, Inc. has shrunk earnings per share by 20% each year. Its revenue is up 4.1% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has IF Bancorp, Inc. Been A Good Investment?
With a total shareholder return of 15% over three years, IF Bancorp, Inc. 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.
We examined the amount IF Bancorp, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
While shareholder returns are acceptable, they don’t delight. So you may want to delve deeper, because we don’t think the CEO pay is too low. So you may want to check if insiders are buying IF Bancorp shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.