Yahoo Finance Is Ottawa Bancorp Inc’s (NASDAQ:OTTW) CEO Paid At A Competitive Rate?
In 2016 Jon Kranov was appointed CEO of Ottawa Bancorp Inc (NASDAQ:OTTW). 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. 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.
Check out our latest analysis for Ottawa Bancorp
How Does Jon Kranov’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Ottawa Bancorp Inc has a market cap of US$45m, and is paying total annual CEO compensation of US$308k. That’s just a smallish increase of 6.3% on last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$296k.
That means Jon Kranov receives fairly typical remuneration for the CEO of a company that size. 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 a visual representation of the CEO compensation at Ottawa Bancorp, below.
Is Ottawa Bancorp Inc Growing?
Over the last three years Ottawa Bancorp Inc has shrunk its earnings per share by an average of 3.0% per year. Its revenue is up 10.0% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Ottawa Bancorp Inc Been A Good Investment?
Boasting a total shareholder return of 38% over three years, Ottawa Bancorp Inc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Jon Kranov is paid around what is normal the leaders of comparable size companies.
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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 editorial-team@simplywallst.com.
