Does Lake Shore Bancorp, Inc.’s (NASDAQ:LSBK) CEO Salary Reflect Performance?

Dan Reininga became the CEO of Lake Shore Bancorp, Inc. (NASDAQ:LSBK) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Lake Shore Bancorp

How Does Dan Reininga’s Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Lake Shore Bancorp, Inc. has a market cap of US$89m, and reported total annual CEO compensation of US$470k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$335k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$522k.

So Dan Reininga is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Lake Shore Bancorp has changed over time.

NasdaqGM:LSBK CEO Compensation, January 3rd 2020
NasdaqGM:LSBK CEO Compensation, January 3rd 2020

Is Lake Shore Bancorp, Inc. Growing?

Lake Shore Bancorp, Inc. has increased its earnings per share (EPS) by an average of 7.0% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.5%.

I’m not particularly impressed by the revenue growth, 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. Although we don’t have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Lake Shore Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 3.1% over three years, Lake Shore Bancorp, Inc. has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Dan Reininga is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. While the CEO may not be underpaid, we don’t think the pay is too generous either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Lake Shore Bancorp.

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

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