In 2008 Larry Myers was appointed CEO of First Savings Financial Group, Inc. (NASDAQ:FSFG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Larry Myers’s Compensation Compare With Similar Sized Companies?
According to our data, First Savings Financial Group, Inc. has a market capitalization of US$149m, and paid its CEO total annual compensation worth US$690k over the year to September 2019. That’s a notable increase of 17% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$276k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$521k.
As you can see, Larry Myers is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean First Savings Financial Group, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at First Savings Financial Group has changed from year to year.
Is First Savings Financial Group, Inc. Growing?
Over the last three years First Savings Financial Group, Inc. has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). It achieved revenue growth of 83% 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has First Savings Financial Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 35% over three years, First Savings Financial Group, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at First Savings Financial Group, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if First Savings Financial Group insiders are buying or selling shares.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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