How Should Investors React To WVS Financial Corp.'s (NASDAQ:WVFC) CEO Pay?

In 1998 Dave Bursic was appointed CEO of WVS Financial Corp. (NASDAQ:WVFC). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

View our latest analysis for WVS Financial

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How Does Dave Bursic's Compensation Compare With Similar Sized Companies?

Our data indicates that WVS Financial Corp. is worth US$30m, and total annual CEO compensation was reported as US$521k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$380k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$519k.

So Dave Bursic 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 WVS Financial has changed from year to year.

NasdaqGM:WVFC CEO Compensation, January 16th 2020
NasdaqGM:WVFC CEO Compensation, January 16th 2020

Is WVS Financial Corp. Growing?

Over the last three years WVS Financial Corp. has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). Its revenue is up 5.5% over 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has WVS Financial Corp. Been A Good Investment?

WVS Financial Corp. has served shareholders reasonably well, with a total return of 24% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Remuneration for Dave Bursic is close enough to the median pay for a CEO of a similar sized company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at WVS 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

About OTCPK:WVFC

WVS Financial

Operates as the bank holding company for West View Savings Bank that provides various banking products and services in the United States.

Mediocre balance sheet second-rate dividend payer.

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