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Is MutualFirst Financial Inc’s (NASDAQ:MFSF) CEO Paid At A Competitive Rate?

Dave Heeter has been the CEO of MutualFirst Financial Inc (NASDAQ:MFSF) since 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for MutualFirst Financial

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

According to our data, MutualFirst Financial Inc has a market capitalization of US$304m, and pays its CEO total annual compensation worth US$649k. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$400k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.6m.

Most shareholders would consider it a positive that Dave Heeter takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at MutualFirst Financial, below.

NasdaqGM:MFSF CEO Compensation December 3rd 18

Is MutualFirst Financial Inc Growing?

MutualFirst Financial Inc has increased its earnings per share (EPS) by an average of 2.0% a year, over the last three years Its revenue is up 19% over last year.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. Although we’ll stop short of calling the stock a top performer, we think the company has potential.

You might want to check this free visual report on analyst forecasts for future earnings.

Has MutualFirst Financial Inc Been A Good Investment?

Boasting a total shareholder return of 53% over three years, MutualFirst Financial Inc has done well by shareholders. So they may not be at all concerned if the CEO is 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 is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling MutualFirst Financial shares (free trial).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.