In 2009 Bill Marsh was appointed CEO of Emclaire Financial Corp (NASDAQ:EMCF). 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Bill Marsh’s Compensation Compare With Similar Sized Companies?
According to our data, Emclaire Financial Corp has a market capitalization of US$62m, and paid its CEO total annual compensation worth US$626k over the year to December 2019. That’s below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$376k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$605k.
Next, let’s break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 45% of total compensation represents salary and 55% is other remuneration. Emclaire Financial is paying a higher share of its remuneration through a salary in comparison to the overall industry.
So Bill Marsh is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Emclaire Financial has changed over time.
Is Emclaire Financial Corp Growing?
On average over the last three years, Emclaire Financial Corp has seen earnings per share (EPS) move in a favourable direction by 7.9% each year (using a line of best fit). It achieved revenue growth of 11% over the last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while performance isn’t amazing, we think it really does seem quite respectable. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Emclaire Financial Corp Been A Good Investment?
Given the total loss of 13% over three years, many shareholders in Emclaire Financial Corp are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Bill Marsh is paid around what is normal for the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns – over three years – have been underwhelming. So many would argue that the CEO is certainly not underpaid. On another note, we’ve spotted 2 warning signs for Emclaire Financial that investors should look into moving forward.
If you want to buy a stock that is better than Emclaire Financial, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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