Yahoo Finance Shareholders May Not Be So Generous With Home Federal Bancorp, Inc. of Louisiana's (NASDAQ:HFBL) CEO Compensation And Here's Why
Performance at Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) has been reasonably good and CEO Jim Barlow has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17 November 2021. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for Home Federal Bancorp of Louisiana
How Does Total Compensation For Jim Barlow Compare With Other Companies In The Industry?
At the time of writing, our data shows that Home Federal Bancorp, Inc. of Louisiana has a market capitalization of US$62m, and reported total annual CEO compensation of US$955k for the year to June 2021. That's a notable increase of 80% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$282k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$534k. This suggests that Jim Barlow is paid more than the median for the industry. What's more, Jim Barlow holds US$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2021 | 2020 | Proportion (2021) |
Salary | US$282k | US$273k | 30% |
Other | US$673k | US$259k | 70% |
Total Compensation | US$955k | US$532k | 100% |
Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Home Federal Bancorp of Louisiana sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Home Federal Bancorp, Inc. of Louisiana's Growth Numbers
Home Federal Bancorp, Inc. of Louisiana's earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 19% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Home Federal Bancorp, Inc. of Louisiana Been A Good Investment?
Home Federal Bancorp, Inc. of Louisiana has served shareholders reasonably well, with a total return of 28% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Home Federal Bancorp of Louisiana that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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