Is QCR Holdings, Inc.'s (NASDAQ:QCRH) CEO Pay Justified?
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Doug Hultquist has been the CEO of QCR Holdings, Inc. (NASDAQ:QCRH) since 1993. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for QCR Holdings
How Does Doug Hultquist's Compensation Compare With Similar Sized Companies?
According to our data, QCR Holdings, Inc. has a market capitalization of US$556m, and pays its CEO total annual compensation worth US$986k. (This number is for the twelve months until December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$300k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.6m.
A first glance this seems like a real positive for shareholders, since Doug Hultquist is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at QCR Holdings, below.
Is QCR Holdings, Inc. Growing?
QCR Holdings, Inc. has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 25%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has QCR Holdings, Inc. Been A Good Investment?
Boasting a total shareholder return of 38% over three years, QCR Holdings, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
QCR Holdings, Inc. is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Doug Hultquist deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if QCR Holdings insiders are buying or selling shares.
If you want to buy a stock that is better than QCR Holdings, this free list of high return, low debt companies is a great place to look.
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.
