Corey Chambas has been the CEO of First Business Financial Services, Inc. (NASDAQ:FBIZ) since 2006. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Corey Chambas’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that First Business Financial Services, Inc. has a market cap of US$222m, and reported total annual CEO compensation of US$900k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$443k. 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$1.1m.
So Corey Chambas receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at First Business Financial Services has changed from year to year.
Is First Business Financial Services, Inc. Growing?
On average over the last three years, First Business Financial Services, Inc. has grown earnings per share (EPS) by 16% each year (using a line of best fit). In the last year, its revenue is up 10%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has First Business Financial Services, Inc. Been A Good Investment?
First Business Financial Services, Inc. has served shareholders reasonably well, with a total return of 15% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Corey Chambas is paid around the same as most CEOs of similar size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Business Financial Services (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.