Dave Heeter became the CEO of MutualFirst Financial, Inc. (NASDAQ:MFSF) in 2003. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Dave Heeter’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MutualFirst Financial, Inc. has a market cap of US$274m, and is paying total annual CEO compensation of US$674k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$414k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.
Most shareholders would consider it a positive that Dave Heeter takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at MutualFirst Financial, below.
Is MutualFirst Financial, Inc. Growing?
MutualFirst Financial, Inc. has increased its earnings per share (EPS) by an average of 9.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 18%.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while performance isn’t amazing, we think it really does seem quite respectable.
Has MutualFirst Financial, Inc. Been A Good Investment?
MutualFirst Financial, Inc. has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It looks like MutualFirst Financial, Inc. pays its CEO less than similar sized companies.
It’s well worth noting that while Dave Heeter is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. So shareholders may not be elated, but they shouldn’t be worried about the CEO compensation, either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MutualFirst Financial.
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.
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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. Thank you for reading.