Why We Think Landmark Bancorp, Inc.'s (NASDAQ:LARK) CEO Compensation Is Not Excessive At All

CEO Michael Scheopner has done a decent job of delivering relatively good performance at Landmark Bancorp, Inc. (NASDAQ:LARK) recently. As shareholders go into the upcoming AGM on 19 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Landmark Bancorp

How Does Total Compensation For Michael Scheopner Compare With Other Companies In The Industry?

According to our data, Landmark Bancorp, Inc. has a market capitalization of US$119m, and paid its CEO total annual compensation worth US$607k over the year to December 2020. That's a notable increase of 15% on last year. We note that the salary portion, which stands at US$385.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$573k. So it looks like Landmark Bancorp compensates Michael Scheopner in line with the median for the industry. What's more, Michael Scheopner holds US$2.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$385k	US$360k	63%
Other	US$222k	US$168k	37%
Total Compensation	US$607k	US$528k	100%

Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. It's interesting to note that Landmark Bancorp pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

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

Landmark Bancorp, Inc.'s earnings per share (EPS) grew 71% per year over the last three years. In the last year, its revenue is up 37%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Landmark Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 16% over three years, Landmark Bancorp, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Landmark Bancorp.

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