Pete Johnson became the CEO of Eagle Bancorp Montana, Inc. (NASDAQ:EBMT) in 2009. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Pete Johnson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Eagle Bancorp Montana, Inc. has a market cap of US$89m, and is paying total annual CEO compensation of US$418k. (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$262k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$303k.
It would therefore appear that Eagle Bancorp Montana, Inc. pays Pete Johnson more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Eagle Bancorp Montana, below.
Is Eagle Bancorp Montana, Inc. Growing?
On average over the last three years, Eagle Bancorp Montana, Inc. has grown earnings per share (EPS) by 5.6% each year (using a line of best fit). In the last year, its revenue is up 9.2%.
I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Eagle Bancorp Montana, Inc. Been A Good Investment?
Boasting a total shareholder return of 49% over three years, Eagle Bancorp Montana, Inc. 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.
We examined the amount Eagle Bancorp Montana, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there’s no arguing with the strong returns to shareholders, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Eagle Bancorp Montana insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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 email@example.com.