How Much is Kentucky First Federal Bancorp's (NASDAQ:KFFB) CEO Getting Paid?
Don Jennings has been the CEO of Kentucky First Federal Bancorp (NASDAQ:KFFB) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Kentucky First Federal Bancorp
How Does Don Jennings's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Kentucky First Federal Bancorp has a market cap of US$61m, and reported total annual CEO compensation of US$209k for the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$190k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$490k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Kentucky First Federal Bancorp has changed over time.
Is Kentucky First Federal Bancorp Growing?
Over the last three years Kentucky First Federal Bancorp has shrunk its earnings per share by an average of 18% per year (measured with a line of best fit). It saw its revenue drop 5.4% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Kentucky First Federal Bancorp Been A Good Investment?
Kentucky First Federal Bancorp has generated a total shareholder return of 0.7% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
It looks like Kentucky First Federal Bancorp pays its CEO less than similar sized companies.
Don Jennings is remunerated more modestly than is a normal at similar sized companies. But the business isn't growing earnings per share, and the returns to shareholders haven't been wonderful. We would like to see EPS growth from the business, although we wouldn't say the CEO pay is high. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kentucky First Federal Bancorp (free visualization of insider trades).
Important note: Kentucky First Federal Bancorp 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.
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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.
