Brad Krehbiel became the CEO of HMN Financial, Inc. (NASDAQ:HMNF) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Brad Krehbiel's Compensation Compare With Similar Sized Companies?
According to our data, HMN Financial, Inc. has a market capitalization of US$104m, and pays its CEO total annual compensation worth US$449k. (This is based on the year to December 2018). That's just a smallish increase of 5.7% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$323k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$427k.
So Brad Krehbiel is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at HMN Financial has changed over time.
Is HMN Financial, Inc. Growing?
On average over the last three years, HMN Financial, Inc. has grown earnings per share (EPS) by 13% each year (using a line of best fit). Its revenue is up 7.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has HMN Financial, Inc. Been A Good Investment?
I think that the total shareholder return of 97%, over three years, would leave most HMN Financial, Inc. shareholders smiling. 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.
Brad Krehbiel is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at HMN Financial.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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