Bill Harrod became the CEO of First Capital Inc (NASDAQ:FCAP) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Bill Harrod’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that First Capital Inc has a market cap of US$159m, and is paying total annual CEO compensation of US$350k. Notably, that’s an increase of 25% over the year before. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$950k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at First Capital has changed from year to year.
Is First Capital Inc Growing?
Over the last three years First Capital Inc has grown its earnings per share (EPS) by an average of 11% per year. It achieved revenue growth of 5.8% over the 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.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has First Capital Inc Been A Good Investment?
Most shareholders would probably be pleased with First Capital Inc for providing a total return of 75% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like First Capital Inc pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Bill Harrod deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Capital Inc (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 firstname.lastname@example.org.