Charlie Funk became the CEO of MidWestOne Financial Group, Inc. (NASDAQ:MOFG) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Charlie Funk’s Compensation Compare With Similar Sized Companies?
According to our data, MidWestOne Financial Group, Inc. has a market capitalization of US$493m, and pays its CEO total annual compensation worth US$774k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$437k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
A first glance this seems like a real positive for shareholders, since Charlie Funk is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at MidWestOne Financial Group has changed from year to year.
Is MidWestOne Financial Group, Inc. Growing?
MidWestOne Financial Group, Inc. has increased its earnings per share (EPS) by an average of 4.3% a year, over the last three years (using a line of best fit). It achieved revenue growth of 21% over the last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we’ll stop short of calling the stock a top performer, we think the company has potential.
Has MidWestOne Financial Group, Inc. Been A Good Investment?
MidWestOne Financial Group, Inc. has generated a total shareholder return of 7.9% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It looks like MidWestOne Financial Group, Inc. pays its CEO less than similar sized companies.
Charlie Funk receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, from my perspective. However I do not find the CEO compensation to be concerning. Whatever your view on compensation, you might want to check if insiders are buying or selling MidWestOne Financial Group shares (free trial).
Important note: MidWestOne Financial Group 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.
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