Paul Tobias became the CEO of Mackinac Financial Corporation (NASDAQ:MFNC) in 2004. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Paul Tobias's Compensation Compare With Similar Sized Companies?
Our data indicates that Mackinac Financial Corporation is worth US$168m, and total annual CEO compensation is US$502k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$327k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.0m.
Most shareholders would consider it a positive that Paul Tobias takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Mackinac Financial has changed from year to year.
Is Mackinac Financial Corporation Growing?
Mackinac Financial Corporation saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 23% over the last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.
Has Mackinac Financial Corporation Been A Good Investment?
Boasting a total shareholder return of 65% over three years, Mackinac Financial Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that Mackinac Financial Corporation remunerates its CEO below most similar sized companies.
Paul Tobias receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mackinac Financial (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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