Increases to Home Federal Bancorp, Inc. of Louisiana's (NASDAQ:HFBL) CEO Compensation Might Cool off for now

Simply Wall St
November 10, 2021
Source: Shutterstock

CEO Jim Barlow has done a decent job of delivering relatively good performance at Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) recently. As shareholders go into the upcoming AGM on 17 November 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Home Federal Bancorp of Louisiana

Comparing Home Federal Bancorp, Inc. of Louisiana's CEO Compensation With the industry

At the time of writing, our data shows that Home Federal Bancorp, Inc. of Louisiana has a market capitalization of US$62m, and reported total annual CEO compensation of US$955k for the year to June 2021. Notably, that's an increase of 80% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$282k.

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 Jim Barlow is paid more than the median for the industry. What's more, Jim Barlow holds US$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary US$282k US$273k 30%
Other US$673k US$259k 70%
Total CompensationUS$955k US$532k100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. In Home Federal Bancorp of Louisiana's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

NasdaqCM:HFBL CEO Compensation November 11th 2021

A Look at Home Federal Bancorp, Inc. of Louisiana's Growth Numbers

Over the past three years, Home Federal Bancorp, Inc. of Louisiana has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Home Federal Bancorp, Inc. of Louisiana Been A Good Investment?

With a total shareholder return of 28% over three years, Home Federal Bancorp, Inc. of Louisiana shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Home Federal Bancorp of Louisiana that investors should look into moving forward.

Switching gears from Home Federal Bancorp of Louisiana, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.