Shareholders May Not Be So Generous With CF Bankshares Inc.'s (NASDAQ:CFBK) CEO Compensation And Here's Why

By
Simply Wall St
Published
May 26, 2021
NasdaqCM:CFBK
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CEO Tim O’Dell has done a decent job of delivering relatively good performance at CF Bankshares Inc. (NASDAQ:CFBK) recently. As shareholders go into the upcoming AGM on 02 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for CF Bankshares

How Does Total Compensation For Tim O’Dell Compare With Other Companies In The Industry?

Our data indicates that CF Bankshares Inc. has a market capitalization of US$126m, and total annual CEO compensation was reported as US$960k for the year to December 2020. Notably, that's an increase of 15% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$375k.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$534k. Accordingly, our analysis reveals that CF Bankshares Inc. pays Tim O’Dell north of the industry median. Furthermore, Tim O’Dell directly owns US$4.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary US$375k US$315k 39%
Other US$585k US$519k 61%
Total CompensationUS$960k US$834k100%

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. CF Bankshares sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NasdaqCM:CFBK CEO Compensation May 26th 2021

CF Bankshares Inc.'s Growth

Over the past three years, CF Bankshares Inc. has seen its earnings per share (EPS) grow by 144% per year. In the last year, its revenue is up 133%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CF Bankshares Inc. Been A Good Investment?

We think that the total shareholder return of 43%, over three years, would leave most CF Bankshares Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which are concerning) in CF Bankshares we think you should know about.

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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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