Yahoo Finance Is Hingham Institution for Savings's (NASDAQ:HIFS) CEO Pay Justified?
Robert Gaughen has been the CEO of Hingham Institution for Savings (NASDAQ:HIFS) since 1993. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Hingham Institution for Savings
How Does Robert Gaughen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Hingham Institution for Savings has a market cap of US$442m, and reported total annual CEO compensation of US$1.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.7m. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
So Robert Gaughen receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Hingham Institution for Savings has changed from year to year.
Is Hingham Institution for Savings Growing?
Over the last three years Hingham Institution for Savings has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is down 2.9%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Hingham Institution for Savings Been A Good Investment?
Hingham Institution for Savings has generated a total shareholder return of 9.4% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Remuneration for Robert Gaughen is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Hingham Institution for Savings insiders are buying or selling shares.
If you want to buy a stock that is better than Hingham Institution for Savings, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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