Does MidWestOne Financial Group's (NASDAQ:MOFG) CEO Salary Compare Well With Industry Peers?

Charlie Funk has been the CEO of MidWestOne Financial Group, Inc. (NASDAQ:MOFG) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. 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 MidWestOne Financial Group

Comparing MidWestOne Financial Group, Inc.'s CEO Compensation With the industry

According to our data, MidWestOne Financial Group, Inc. has a market capitalization of US$404m, and paid its CEO total annual compensation worth US$952k over the year to December 2019. That's a notable increase of 23% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$460k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.1m. This suggests that MidWestOne Financial Group remunerates its CEO largely in line with the industry average. What's more, Charlie Funk holds US$2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that MidWestOne Financial Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

MidWestOne Financial Group, Inc.'s Growth

MidWestOne Financial Group, Inc. has reduced its earnings per share by 54% a year over the last three years. Its revenue is up 6.4% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MidWestOne Financial Group, Inc. Been A Good Investment?

Since shareholders would have lost about 21% over three years, some MidWestOne Financial Group, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, MidWestOne Financial Group, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for MidWestOne Financial Group that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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