Stock Analysis

How Much is First Business Financial Services' (NASDAQ:FBIZ) CEO Getting Paid?

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Corey Chambas became the CEO of First Business Financial Services, Inc. (NASDAQ:FBIZ) in 2006, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for First Business Financial Services

Comparing First Business Financial Services, Inc.'s CEO Compensation With the industry

Our data indicates that First Business Financial Services, Inc. has a market capitalization of US$164m, and total annual CEO compensation was reported as US$1.2m for the year to December 2019. Notably, that's an increase of 65% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$466k.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$827k. Hence, we can conclude that Corey Chambas is remunerated higher than the industry median. Furthermore, Corey Chambas directly owns US$2.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20192018Proportion (2019)
Salary US$466k US$443k 38%
Other US$766k US$304k 62%
Total CompensationUS$1.2m US$747k100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. First Business Financial Services pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

NasdaqGS:FBIZ CEO Compensation December 4th 2020

First Business Financial Services, Inc.'s Growth

First Business Financial Services, Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. Its revenue is up 2.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has First Business Financial Services, Inc. Been A Good Investment?

Given the total shareholder loss of 10% over three years, many shareholders in First Business Financial Services, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, First Business Financial Services, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Corey is earning a very handsome sum.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for First Business Financial Services that you should be aware of before investing.

Switching gears from First Business Financial Services, 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.

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About NasdaqGS:FBIZ

First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals.

Flawless balance sheet established dividend payer.