Joe Kiley has been the CEO of First Financial Northwest, Inc. (NASDAQ:FFNW) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Joe Kiley’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that First Financial Northwest, Inc. has a market cap of US$166m, and is paying total annual CEO compensation of US$728k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$438k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$985k.
That means Joe Kiley receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at First Financial Northwest, below.
Is First Financial Northwest, Inc. Growing?
First Financial Northwest, Inc. has increased its earnings per share (EPS) by an average of 32% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 19%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has First Financial Northwest, Inc. Been A Good Investment?
First Financial Northwest, Inc. has served shareholders reasonably well, with a total return of 31% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Joe Kiley is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Financial Northwest (free visualization of insider trades).
If you want to buy a stock that is better than First Financial Northwest, this free list of high return, low debt companies is a great place to look.
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