We Think Bank First Corporation's (NASDAQ:BFC) CEO Compensation Looks Fair
We have been pretty impressed with the performance at Bank First Corporation (NASDAQ:BFC) recently and CEO Mike Molepske deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 14 June 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Bank First
How Does Total Compensation For Mike Molepske Compare With Other Companies In The Industry?
At the time of writing, our data shows that Bank First Corporation has a market capitalization of US$552m, and reported total annual CEO compensation of US$1.3m for the year to December 2020. That's a notable increase of 15% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$551k.
On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.1m. So it looks like Bank First compensates Mike Molepske in line with the median for the industry. Moreover, Mike Molepske also holds US$7.6m worth of Bank First stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$551k | US$533k | 44% |
Other | US$710k | US$560k | 56% |
Total Compensation | US$1.3m | US$1.1m | 100% |
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. There isn't a significant difference between Bank First and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Bank First Corporation's Growth
Bank First Corporation has seen its earnings per share (EPS) increase by 24% a year over the past three years. It achieved revenue growth of 36% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Bank First Corporation Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Bank First Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Bank First (1 is a bit unpleasant!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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