Brian Young has been the CEO of United Bancshares, Inc. (NASDAQ:UBOH) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for United Bancshares.
Check out our latest analysis for United Bancshares
How Does Total Compensation For Brian Young Compare With Other Companies In The Industry?
According to our data, United Bancshares, Inc. has a market capitalization of US$79m, and paid its CEO total annual compensation worth US$544k over the year to December 2019. That's just a smallish increase of 6.7% on last year. Notably, the salary which is US$345.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$615k. From this we gather that Brian Young is paid around the median for CEOs in the industry. Moreover, Brian Young also holds US$743k worth of United Bancshares stock directly under their own name.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$345k | US$326k | 63% |
| Other | US$199k | US$184k | 37% |
| Total Compensation | US$544k | US$510k | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that United Bancshares pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at United Bancshares, Inc.'s Growth Numbers
United Bancshares, Inc.'s earnings per share (EPS) grew 53% per year over the last three years. Its revenue is up 31% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 United Bancshares, Inc. Been A Good Investment?
United Bancshares, Inc. has served shareholders reasonably well, with a total return of 17% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
As we touched on above, United Bancshares, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.
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 2 warning signs for United Bancshares that you should be aware of before investing.
Important note: United Bancshares 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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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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About OTCPK:UBOH
United Bancshares
Operates as the bank holding company for The Union Bank Company that provides various commercial and consumer banking services.
Good value with adequate balance sheet.
