In 2012 Brad Krehbiel was appointed CEO of HMN Financial, Inc. (NASDAQ:HMNF). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
How Does Brad Krehbiel's Compensation Compare With Similar Sized Companies?
According to our data, HMN Financial, Inc. has a market capitalization of US$103m, and paid its CEO total annual compensation worth US$449k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$323k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$492k.
So Brad Krehbiel is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at HMN Financial has changed from year to year.
Is HMN Financial, Inc. Growing?
Over the last three years HMN Financial, Inc. has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has HMN Financial, Inc. Been A Good Investment?
Most shareholders would probably be pleased with HMN Financial, Inc. for providing a total return of 57% 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.
Brad Krehbiel is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying HMN Financial shares with their own money (free access).
Important note: HMN Financial 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.
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