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In 2016 Jeff Dick was appointed CEO of MainStreet Bancshares, Inc. (NASDAQ:MNSB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jeff Dick’s Compensation Compare With Similar Sized Companies?
Our data indicates that MainStreet Bancshares, Inc. is worth US$185m, and total annual CEO compensation is US$660k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$440k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
As you can see, Jeff Dick is paid less than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MainStreet Bancshares, Inc. is getting a great deal. We can better assess whether the pay is adequate by looking into the underlying business performance.
The graphic below shows how CEO compensation at MainStreet Bancshares has changed from year to year.
Is MainStreet Bancshares, Inc. Growing?
MainStreet Bancshares, Inc. has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). Its revenue is up 48% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Has MainStreet Bancshares, Inc. Been A Good Investment?
Most shareholders would probably be pleased with MainStreet Bancshares, Inc. for providing a total return of 106% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at MainStreet Bancshares, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well below the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO if anything may be under-compensated. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling MainStreet Bancshares (free visualization of insider trades).
Important note: MainStreet Bancshares may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.