Jeff Hilzinger became the CEO of Marlin Business Services Corp. (NASDAQ:MRLN) in 2016. 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 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 Jeff Hilzinger’s Compensation Compare With Similar Sized Companies?
Our data indicates that Marlin Business Services Corp. is worth US$295m, and total annual CEO compensation is US$1.6m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$450k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$919k.
It would therefore appear that Marlin Business Services Corp. pays Jeff Hilzinger 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Marlin Business Services has changed from year to year.
Is Marlin Business Services Corp. Growing?
Marlin Business Services Corp. has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). Its revenue is up 8.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Marlin Business Services Corp. Been A Good Investment?
Most shareholders would probably be pleased with Marlin Business Services Corp. for providing a total return of 87% over three years. 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 compared the total CEO remuneration paid by Marlin Business Services Corp., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Marlin Business Services insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.