Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card!
In 2009 Matthew Kanipe was appointed CEO of Citizens First Corporation ( NASDAQ:CZFC ). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.
How Does Matthew Kanipe’s Compensation Compare With Similar Sized Companies?
Our data indicates that Citizens First Corporation is worth US$56m, and total annual CEO compensation is US$414k. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$255k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$300k.
It would therefore appear that Citizens First Corporation pays Matthew Kanipe more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Citizens First, below.
Is Citizens First Corporation Growing?
Citizens First Corporation has increased its earnings per share (EPS) by an average of 2.8% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just -0.3%.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Citizens First Corporation Been A Good Investment?
Most shareholders would probably be pleased with Citizens First Corporation for providing a total return of 65% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Citizens First Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
While we generally prefer to see stronger EPS growth, there’s no arguing with the strong returns to shareholders, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Citizens First (free visualization of insider trades).
If you want to buy a stock that is better than Citizens First, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org .