Rob Shuford has been the CEO of Old Point Financial Corporation (NASDAQ:OPOF) since 1984. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
How Does Rob Shuford's Compensation Compare With Similar Sized Companies?
According to our data, Old Point Financial Corporation has a market capitalization of US$124m, and paid its CEO total annual compensation worth US$355k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$300k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$496k.
That means Rob Shuford receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Old Point Financial has changed from year to year.
Is Old Point Financial Corporation Growing?
Old Point Financial Corporation has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Old Point Financial Corporation Been A Good Investment?
With a total shareholder return of 25% over three years, Old Point Financial Corporation shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Rob Shuford is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Old Point Financial shares with their own money (free access).
Important note: Old Point Financial 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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