David Turner has been the CEO of Hawthorn Bancshares Inc (NASDAQ:HWBK) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Turner’s Compensation Compare With Similar Sized Companies?
Our data indicates that Hawthorn Bancshares Inc is worth US$137m, and total annual CEO compensation is US$844k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$462k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$293k.
Thus we can conclude that David Turner receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hawthorn Bancshares Inc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Hawthorn Bancshares has changed over time.
Is Hawthorn Bancshares Inc Growing?
Over the last three years Hawthorn Bancshares Inc has shrunk its earnings per share by an average of 22% per year. Its revenue is up 4.1% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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 you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hawthorn Bancshares Inc Been A Good Investment?
I think that the total shareholder return of 71%, over three years, would leave most Hawthorn Bancshares Inc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Hawthorn Bancshares Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
However, we can’t argue with the strong returns to shareholders, over the same time period. So on this analysis we’d stop short of criticizing the level of CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Hawthorn Bancshares shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings 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 firstname.lastname@example.org.