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Is United Bancorp, Inc.'s (NASDAQ:UBCP) CEO Paid Enough Relative To Peers?

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Simply Wall St
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In 2014 Scott Everson was appointed CEO of United Bancorp, Inc. (NASDAQ:UBCP). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

See our latest analysis for United Bancorp

How Does Scott Everson's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that United Bancorp, Inc. has a market cap of US$76m, and reported total annual CEO compensation of US$812k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$335k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$523k.

It would therefore appear that United Bancorp, Inc. pays Scott Everson 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 United Bancorp has changed from year to year.

NasdaqCM:UBCP CEO Compensation, December 20th 2019
NasdaqCM:UBCP CEO Compensation, December 20th 2019

Is United Bancorp, Inc. Growing?

On average over the last three years, United Bancorp, Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 16% over last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has United Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 13% over three years, United Bancorp, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We examined the amount United Bancorp, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling United Bancorp (free visualization of insider trades).

Important note: United Bancorp 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.

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.

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. Thank you for reading.