We Think The Compensation For Timberland Bancorp, Inc.'s (NASDAQ:TSBK) CEO Looks About Right

By
Simply Wall St
Published
January 19, 2022
NasdaqGM:TSBK
Source: Shutterstock

Under the guidance of CEO Mike Sand, Timberland Bancorp, Inc. (NASDAQ:TSBK) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25 January 2022. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Timberland Bancorp

Comparing Timberland Bancorp, Inc.'s CEO Compensation With the industry

According to our data, Timberland Bancorp, Inc. has a market capitalization of US$244m, and paid its CEO total annual compensation worth US$685k over the year to September 2021. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$451.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$874k. This suggests that Timberland Bancorp remunerates its CEO largely in line with the industry average. Furthermore, Mike Sand directly owns US$4.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20212020Proportion (2021)
Salary US$451k US$410k 66%
Other US$234k US$275k 34%
Total CompensationUS$685k US$685k100%

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Timberland Bancorp is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NasdaqGM:TSBK CEO Compensation January 19th 2022

Timberland Bancorp, Inc.'s Growth

Timberland Bancorp, Inc. has seen its earnings per share (EPS) increase by 13% a year over the past three years. Its revenue is up 7.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Timberland Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 21% over three years, Timberland Bancorp, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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. That's why we did some digging and identified 1 warning sign for Timberland Bancorp that you should be aware of before investing.

Important note: Timberland Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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