In 2012 Tom Wiseman was appointed CEO of Ohio Valley Banc Corp. (NASDAQ:OVBC). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Tom Wiseman’s Compensation Compare With Similar Sized Companies?
Our data indicates that Ohio Valley Banc Corp. is worth US$167m, and total annual CEO compensation is US$653k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$295k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$956k.
Most shareholders would consider it a positive that Tom Wiseman takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Ohio Valley Banc has changed from year to year.
Is Ohio Valley Banc Corp. Growing?
Over the last three years Ohio Valley Banc Corp. has shrunk its earnings per share by an average of 1.9% per year. In the last year, its revenue is up 5.9%.
In the last three years the company has failed to grow earnings per s. 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.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Ohio Valley Banc Corp. Been A Good Investment?
Most shareholders would probably be pleased with Ohio Valley Banc Corp. for providing a total return of 58% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
It appears that Ohio Valley Banc Corp. remunerates its CEO below most similar sized companies.
Tom Wiseman is paid less than CEOs of similar size companies. While the company isn’t growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ohio Valley Banc (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.