Is First Business Financial Services, Inc.'s (NASDAQ:FBIZ) CEO Paid At A Competitive Rate?

Simply Wall St

Corey Chambas has been the CEO of First Business Financial Services, Inc. (NASDAQ:FBIZ) since 2006. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for First Business Financial Services

How Does Corey Chambas's Compensation Compare With Similar Sized Companies?

According to our data, First Business Financial Services, Inc. has a market capitalization of US$216m, and paid its CEO total annual compensation worth US$900k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$443k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.

So Corey Chambas 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 First Business Financial Services has changed from year to year.

NasdaqGS:FBIZ CEO Compensation, February 26th 2020

Is First Business Financial Services, Inc. Growing?

First Business Financial Services, Inc. has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has First Business Financial Services, Inc. Been A Good Investment?

First Business Financial Services, Inc. has not done too badly by shareholders, with a total return of 3.6%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Corey Chambas is paid around the same as most CEOs of similar size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Business Financial Services (free visualization of insider trades).

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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