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Is MutualFirst Financial, Inc.'s (NASDAQ:MFSF) CEO Salary Justified?

Simply Wall St

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Dave Heeter became the CEO of MutualFirst Financial, Inc. (NASDAQ:MFSF) in 2003. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

Check out our latest analysis for MutualFirst Financial

How Does Dave Heeter's Compensation Compare With Similar Sized Companies?

Our data indicates that MutualFirst Financial, Inc. is worth US$263m, and total annual CEO compensation is US$674k. (This is based on the year to December 2018). That's just a smallish increase of 3.3% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$414k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at MutualFirst Financial has changed from year to year.

NasdaqGM:MFSF CEO Compensation, June 10th 2019

Is MutualFirst Financial, Inc. Growing?

MutualFirst Financial, Inc. has increased its earnings per share (EPS) by an average of 7.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 26%.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! You might want to check this free visual report on analyst forecasts for future earnings.

Has MutualFirst Financial, Inc. Been A Good Investment?

MutualFirst Financial, Inc. has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

It looks like MutualFirst Financial, Inc. pays its CEO less than similar sized companies.

Dave Heeter receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MutualFirst Financial.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.