We Think Bank First Corporation's (NASDAQ:BFC) CEO Compensation Looks Fair

By
Simply Wall St
Published
June 07, 2021
NasdaqCM:BFC
Source: Shutterstock

The performance at Bank First Corporation (NASDAQ:BFC) has been quite strong recently and CEO Mike Molepske has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 14 June 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Bank First

How Does Total Compensation For Mike Molepske Compare With Other Companies In The Industry?

Our data indicates that Bank First Corporation has a market capitalization of US$552m, and total annual CEO compensation was reported as US$1.3m for the year to December 2020. Notably, that's an increase of 15% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$551k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.1m. From this we gather that Mike Molepske is paid around the median for CEOs in the industry. What's more, Mike Molepske holds US$7.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$551k US$533k 44%
Other US$710k US$560k 56%
Total CompensationUS$1.3m US$1.1m100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Our data reveals that Bank First allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NasdaqCM:BFC CEO Compensation June 8th 2021

A Look at Bank First Corporation's Growth Numbers

Bank First Corporation has seen its earnings per share (EPS) increase by 24% a year over the past three years. Its revenue is up 36% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bank First Corporation Been A Good Investment?

Most shareholders would probably be pleased with Bank First Corporation for providing a total return of 41% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is significant) in Bank First we think you should know about.

Switching gears from Bank First, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

When trading Bank First or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.