Does Premier Financial Bancorp, Inc.’s (NASDAQ:PFBI) CEO Pay Reflect Performance?

Bob Walker has been the CEO of Premier Financial Bancorp, Inc. (NASDAQ:PFBI) since 2001. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Premier Financial Bancorp

How Does Bob Walker’s Compensation Compare With Similar Sized Companies?

Our data indicates that Premier Financial Bancorp, Inc. is worth US$228m, and total annual CEO compensation is US$486k. (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$350k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.0m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Premier Financial Bancorp has changed over time.

NasdaqGM:PFBI CEO Compensation, March 21st 2019
NasdaqGM:PFBI CEO Compensation, March 21st 2019

Is Premier Financial Bancorp, Inc. Growing?

Over the last three years Premier Financial Bancorp, Inc. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). It achieved revenue growth of 4.5% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Premier Financial Bancorp, Inc. Been A Good Investment?

Boasting a total shareholder return of 55% over three years, Premier Financial Bancorp, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Premier Financial Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Bob Walker deserves a raise!

It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Premier Financial Bancorp.

Important note: Premier Financial Bancorp 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.