Stock Analysis

Here's Why FFBW, Inc.'s (NASDAQ:FFBW) CEO Is Unlikely to Expect A Pay Rise This Year

  •  Updated
NasdaqCM:FFBW
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CEO Ed Schaefer has done a decent job of delivering relatively good performance at FFBW, Inc. (NASDAQ:FFBW) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26 May 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for FFBW

Comparing FFBW, Inc.'s CEO Compensation With the industry

According to our data, FFBW, Inc. has a market capitalization of US$76m, and paid its CEO total annual compensation worth US$401k over the year to December 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at US$250.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$534k. This suggests that FFBW remunerates its CEO largely in line with the industry average. Furthermore, Ed Schaefer directly owns US$866k worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary US$250k US$243k 62%
Other US$151k US$147k 38%
Total CompensationUS$401k US$390k100%

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. FFBW pays out 62% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NasdaqCM:FFBW CEO Compensation May 20th 2021

FFBW, Inc.'s Growth

FFBW, Inc.'s earnings per share (EPS) grew 55% per year over the last three years. In the last year, its revenue is up 15%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has FFBW, Inc. Been A Good Investment?

FFBW, Inc. has generated a total shareholder return of 2.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for FFBW that you should be aware of before investing.

Important note: FFBW is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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