In 2009 Bill Marsh was appointed CEO of Emclaire Financial Corp (NASDAQ:EMCF). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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$88m, and pays its CEO total annual compensation worth US$648k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$346k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$296k.
Thus we can conclude that Bill Marsh receives more in total compensation than the median of a group of companies in the same market, and of similar size to Emclaire Financial Corp. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. Take a look at Emclaire Financial’s key growth metrics by clicking on this link to view earnings, revenue and cash flow.
You can see, below, how CEO compensation at Emclaire Financial has changed over time.
Is Emclaire Financial Corp Growing?
Over the last three years, Emclaire Financial Corp has not seen its earnings per share change much, though they have improved slightly. Its revenue is up 11% over 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.
Has Emclaire Financial Corp Been A Good Investment?
Most shareholders would probably be pleased with Emclaire Financial Corp for providing a total return of 46% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Emclaire Financial Corp, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we generally prefer to see stronger EPS growth, there’s no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Emclaire Financial (free visualization of insider trades).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.