What Does Home Federal Bancorp of Louisiana's (NASDAQ:HFBL) CEO Pay Reveal?

Jim Barlow became the CEO of Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Home Federal Bancorp of Louisiana

How Does Total Compensation For Jim Barlow Compare With Other Companies In The Industry?

Our data indicates that Home Federal Bancorp, Inc. of Louisiana has a market capitalization of US$44m, and total annual CEO compensation was reported as US$553k for the year to June 2020. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$273k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$511k. From this we gather that Jim Barlow is paid around the median for CEOs in the industry. Moreover, Jim Barlow also holds US$2.2m worth of Home Federal Bancorp of Louisiana stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. It's interesting to note that Home Federal Bancorp of Louisiana allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Home Federal Bancorp, Inc. of Louisiana's Growth

Home Federal Bancorp, Inc. of Louisiana has seen its earnings per share (EPS) increase by 4.8% a year over the past three years. It achieved revenue growth of 1.1% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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?

Home Federal Bancorp, Inc. of Louisiana has not done too badly by shareholders, with a total return of 8.4%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Jim is compensated close to the median for companies of its size, and which belong to the same industry. But the company has failed to produce substantial growth in either EPS or total shareholder return. We'd say that Jim is remunerated reasonably, but shareholders might be looking for better returns before they agree Jim deserves a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Home Federal Bancorp of Louisiana that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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