Rob Shuford is the CEO of Old Point Financial Corporation (NASDAQ:OPOF). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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 Rob Shuford’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Old Point Financial Corporation has a market cap of US$113m, and is paying total annual CEO compensation of US$349k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$300k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$421k.
So Rob Shuford is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Old Point Financial has changed over time.
Is Old Point Financial Corporation Growing?
Old Point Financial Corporation has reduced its earnings per share by an average of 30% a year, over the last three years (measured with a line of best fit). Its revenue is up 11% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Old Point Financial Corporation Been A Good Investment?
With a total shareholder return of 18% over three years, Old Point Financial Corporation shareholders would, in general, be reasonably content. 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.
Remuneration for Rob Shuford is close enough to the median pay for a CEO of a similar sized company .
We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn’t say the CEO pay is too high, but we’d venture the company should look to improve its business metrics (and share price) before paying any more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Old Point Financial.
If you want to buy a stock that is better than Old Point Financial, this free list of high return, low debt companies is a great place to look.
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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.