Shareholders May Be A Little Conservative With MidWestOne Financial Group, Inc.'s (NASDAQ:MOFG) CEO Compensation For Now

CEO Charlie Funk has done a decent job of delivering relatively good performance at MidWestOne Financial Group, Inc. (NASDAQ:MOFG) recently. As shareholders go into the upcoming AGM on 29 April 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.

Check out our latest analysis for MidWestOne Financial Group

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

Our data indicates that MidWestOne Financial Group, Inc. has a market capitalization of US$488m, and total annual CEO compensation was reported as US$951k for the year to December 2020. This means that the compensation hasn't changed much from last year. We note that the salary of US$500.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.1m. So it looks like MidWestOne Financial Group compensates Charlie Funk in line with the median for the industry. Furthermore, Charlie Funk directly owns US$3.5m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. MidWestOne Financial Group is paying a higher share of its remuneration through a salary in comparison to the overall 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 MidWestOne Financial Group, Inc.'s Growth Numbers

Over the past three years, MidWestOne Financial Group, Inc. has seen its earnings per share (EPS) grow by 5.2% per year. In the last year, its revenue is up 18%.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

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

MidWestOne Financial Group, Inc. has not done too badly by shareholders, with a total return of 2.1%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for MidWestOne Financial Group that investors should look into moving forward.

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

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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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