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Laurie Stewart became the CEO of Sound Financial Bancorp, Inc. ( NASDAQ:SFBC ) in 2008. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Laurie Stewart’s Compensation Compare With Similar Sized Companies?
According to our data, Sound Financial Bancorp, Inc. has a market capitalization of US$83m, and pays its CEO total annual compensation worth US$610k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$382k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.
Thus we can conclude that Laurie Stewart receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sound Financial Bancorp, Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Sound Financial Bancorp has changed from year to year.
Is Sound Financial Bancorp, Inc. Growing?
Sound Financial Bancorp, Inc. has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). It achieved revenue growth of 15% over the last year.
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. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Sound Financial Bancorp, Inc. Been A Good Investment?
Boasting a total shareholder return of 58% over three years, Sound Financial Bancorp, Inc. has done well by shareholders. 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.
We examined the amount Sound Financial Bancorp, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Sound Financial Bancorp shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.com .