Is WVS Financial Corp.’s (NASDAQ:WVFC) CEO Pay Fair?
Dave Bursic has been the CEO of WVS Financial Corp. (NASDAQ:WVFC) since 1998. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for WVS Financial
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How Does Dave Bursic’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that WVS Financial Corp. has a market cap of US$26m, and is paying total annual CEO compensation of US$455k. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$355k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$303k.
Thus we can conclude that Dave Bursic receives more in total compensation than the median of a group of companies in the same market, and of similar size to WVS Financial Corp.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at WVS Financial has changed from year to year.
Is WVS Financial Corp. Growing?
On average over the last three years, WVS Financial Corp. has grown earnings per share (EPS) by 22% each year (using a line of best fit). It achieved revenue growth of 12% over the 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.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has WVS Financial Corp. Been A Good Investment?
Boasting a total shareholder return of 35% over three years, WVS Financial Corp. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We examined the amount WVS Financial Corp. pays its CEO, and compared it to the amount paid by 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at WVS Financial.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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.
