How Does Oconee Federal Financial's (NASDAQ:OFED) CEO Salary Compare to Peers?

Curt Evatt has been the CEO of Oconee Federal Financial Corp. (NASDAQ:OFED) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Oconee Federal Financial pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Oconee Federal Financial

How Does Total Compensation For Curt Evatt Compare With Other Companies In The Industry?

Our data indicates that Oconee Federal Financial Corp. has a market capitalization of US$133m, and total annual CEO compensation was reported as US$347k for the year to June 2020. That's a fairly small increase of 6.5% over the previous year. We note that the salary portion, which stands at US$259.6k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$511k. That is to say, Curt Evatt is paid under the industry median. Moreover, Curt Evatt also holds US$1.6m worth of Oconee Federal Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. It's interesting to note that Oconee Federal Financial pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Oconee Federal Financial Corp.'s Growth

Over the last three years, Oconee Federal Financial Corp. has shrunk its earnings per share by 6.2% per year. It achieved revenue growth of 2.3% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Oconee Federal Financial Corp. Been A Good Investment?

Given the total shareholder loss of 16% over three years, many shareholders in Oconee Federal Financial Corp. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Oconee Federal Financial Corp. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Oconee Federal Financial that investors should look into moving forward.

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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