Is QCR Holdings, Inc. (NASDAQ:QCRH) Excessively Paying Its CEO?

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Doug Hultquist became the CEO of QCR Holdings, Inc. (NASDAQ:QCRH) in 1993. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for QCR Holdings

How Does Doug Hultquist’s Compensation Compare With Similar Sized Companies?

According to our data, QCR Holdings, Inc. has a market capitalization of US$539m, and pays its CEO total annual compensation worth US$1.0m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$300k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.5m.

A first glance this seems like a real positive for shareholders, since Doug Hultquist is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at QCR Holdings, below.

NASDAQGM:QCRH CEO Compensation February 1st 19
NASDAQGM:QCRH CEO Compensation February 1st 19

Is QCR Holdings, Inc. Growing?

On average over the last three years, QCR Holdings, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). In the last year, its revenue is up 24%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

You might want to check this free visual report on analyst forecasts for future earnings.

Has QCR Holdings, Inc. Been A Good Investment?

I think that the total shareholder return of 60%, over three years, would leave most QCR Holdings, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

QCR Holdings, 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. And given most shareholders are probably very happy with recent returns, you might even think that Doug Hultquist deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if QCR Holdings insiders are buying or selling shares.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.