Here's What We Think About IF Bancorp's (NASDAQ:IROQ) CEO Pay

Chip Hasselbring has been the CEO of IF Bancorp, Inc. (NASDAQ:IROQ) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for IF Bancorp.

View our latest analysis for IF Bancorp

Comparing IF Bancorp, Inc.'s CEO Compensation With the industry

According to our data, IF Bancorp, Inc. has a market capitalization of US$71m, and paid its CEO total annual compensation worth US$618k over the year to June 2020. We note that's an increase of 13% above last year. In particular, the salary of US$355.9k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$508k. This suggests that IF Bancorp remunerates its CEO largely in line with the industry average. What's more, Chip Hasselbring holds US$1.0m worth of shares in the company in their own name.

On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. Our data reveals that IF Bancorp allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at IF Bancorp, Inc.'s Growth Numbers

Over the past three years, IF Bancorp, Inc. has seen its earnings per share (EPS) grow by 15% per year. Its revenue is up 8.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has IF Bancorp, Inc. Been A Good Investment?

IF Bancorp, Inc. has generated a total shareholder return of 15% 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.

To Conclude...

As previously discussed, Chip is compensated close to the median for companies of its size, and which belong to the same industry. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

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. That's why we did some digging and identified 2 warning signs for IF Bancorp 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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