Does First Savings Financial Group, Inc.’s (NASDAQ:FSFG) CEO Pay Matter?

Larry Myers has been the CEO of First Savings Financial Group, Inc. (NASDAQ:FSFG) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for First Savings Financial Group

How Does Larry Myers’s Compensation Compare With Similar Sized Companies?

Our data indicates that First Savings Financial Group, Inc. is worth US$124m, and total annual CEO compensation is US$597k. (This figure is for the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$269k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$424k.

It would therefore appear that First Savings Financial Group, Inc. pays Larry Myers 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.

You can see, below, how CEO compensation at First Savings Financial Group has changed over time.

NasdaqCM:FSFG CEO Compensation, April 10th 2019
NasdaqCM:FSFG CEO Compensation, April 10th 2019

Is First Savings Financial Group, Inc. Growing?

On average over the last three years, First Savings Financial Group, Inc. has grown earnings per share (EPS) by 15% each year (using a line of best fit). Its revenue is up 36% over 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. You might want to check this free visual report on analyst forecasts for future earnings.

Has First Savings Financial Group, Inc. Been A Good Investment?

Boasting a total shareholder return of 68% over three years, First Savings Financial Group, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared total CEO remuneration at First Savings Financial Group, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying First Savings Financial Group shares with their own money (free access).

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.