Why First Savings Financial Group, Inc.’s (NASDAQ:FSFG) CEO Pay Matters To You
Larry Myers became the CEO of First Savings Financial Group, Inc. (NASDAQ:FSFG) in 2008. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Larry Myers’s Compensation Compare With Similar Sized Companies?
Our data indicates that First Savings Financial Group, Inc. is worth US$117m, and total annual CEO compensation is US$597k. (This number is for the twelve months until 2018). That’s actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$269k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.
It would therefore appear that First Savings Financial Group, Inc. pays Larry Myers 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.
You can see, below, how CEO compensation at First Savings Financial Group has changed over time.
Is First Savings Financial Group, Inc. Growing?
On average over the last three years, First Savings Financial Group, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 31% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
You might want to check this free visual report on analyst forecasts for future earnings.
Has First Savings Financial Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 58% over three years, First Savings Financial Group, 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.
In Summary…
We compared the total CEO remuneration paid by First Savings Financial Group, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if First Savings Financial Group insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 editorial-team@simplywallst.com.
