In 2013 Joe Kiley was appointed CEO of First Financial Northwest, Inc. (NASDAQ:FFNW). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Joe Kiley’s Compensation Compare With Similar Sized Companies?
Our data indicates that First Financial Northwest, Inc. is worth US$160m, and total annual CEO compensation is US$728k. (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$438k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$955k.
So Joe Kiley is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
The graphic below shows how CEO compensation at First Financial Northwest has changed from year to year.
Is First Financial Northwest, Inc. Growing?
First Financial Northwest, Inc. has increased its earnings per share (EPS) by an average of 29% a year, over the last three years It achieved revenue growth of 28% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Has First Financial Northwest, Inc. Been A Good Investment?
First Financial Northwest, Inc. has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Joe Kiley is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if First Financial Northwest insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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 email@example.com.