Yahoo Finance Should You Worry About Kentucky First Federal Bancorp’s (NASDAQ:KFFB) CEO Pay Cheque?
Don Jennings became the CEO of Kentucky First Federal Bancorp (NASDAQ:KFFB) in 2013. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Don Jennings’s Compensation Compare With Similar Sized Companies?
Our data indicates that Kentucky First Federal Bancorp is worth US$61m, and total annual CEO compensation is US$209k. (This figure is for the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$190k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$303k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Kentucky First Federal Bancorp has changed over time.
Is Kentucky First Federal Bancorp Growing?
Over the last three years Kentucky First Federal Bancorp has shrunk its earnings per share by an average of 17% per year. It achieved revenue growth of 1.4% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet 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 Kentucky First Federal Bancorp Been A Good Investment?
Since shareholders would have lost about 14% over three years, some Kentucky First Federal Bancorp shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
It looks like Kentucky First Federal Bancorp pays its CEO less than similar sized companies.
Shareholders should note that compensation for Don Jennings is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Kentucky First Federal Bancorp shares (free trial).
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.
