Is Emclaire Financial Corp’s (NASDAQ:EMCF) CEO Paid Enough Relative To Peers?

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Bill Marsh has been the CEO of Emclaire Financial Corp (NASDAQ:EMCF) since 2009. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Emclaire Financial

How Does Bill Marsh’s Compensation Compare With Similar Sized Companies?

According to our data, Emclaire Financial Corp has a market capitalization of US$83m, and pays its CEO total annual compensation worth US$666k. (This figure is for the year to December 2018). That’s a modest increase of 2.8% on the prior year year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$358k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$437k.

It would therefore appear that Emclaire Financial Corp pays Bill Marsh more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Emclaire Financial has changed from year to year.

NasdaqCM:EMCF CEO Compensation, May 10th 2019
NasdaqCM:EMCF CEO Compensation, May 10th 2019

Is Emclaire Financial Corp Growing?

Emclaire Financial Corp has increased its earnings per share (EPS) by an average of 1.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 20%.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. Although we’ll stop short of calling the stock a top performer, we think the company has potential. 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?

I think that the total shareholder return of 38%, over three years, would leave most Emclaire Financial Corp 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…

We examined the amount Emclaire Financial Corp pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Emclaire Financial insiders are buying or selling shares.

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.

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.

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. Thank you for reading.