Jim Barlow has been the CEO of Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Home Federal Bancorp of Louisiana pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Home Federal Bancorp of Louisiana

How Does Total Compensation For Jim Barlow Compare With Other Companies In The Industry?

According to our data, Home Federal Bancorp, Inc. of Louisiana has a market capitalization of US$46m, and paid its CEO total annual compensation worth US$553k over the year to June 2020. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$273k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$524k. From this we gather that Jim Barlow is paid around the median for CEOs in the industry. Moreover, Jim Barlow also holds US$2.3m worth of Home Federal Bancorp of Louisiana stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. Home Federal Bancorp of Louisiana pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Home Federal Bancorp, Inc. of Louisiana's Growth Numbers

Over the past three years, Home Federal Bancorp, Inc. of Louisiana has seen its earnings per share (EPS) grow by 4.8% per year. It achieved revenue growth of 1.1% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Home Federal Bancorp, Inc. of Louisiana Been A Good Investment?

Home Federal Bancorp, Inc. of Louisiana has not done too badly by shareholders, with a total return of 9.6%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As previously discussed, Jim is compensated close to the median for companies of its size, and which belong to the same industry. However, EPS and total shareholder return are solid yet uninspiring. Considering the steady performance, it's tough to call out CEO compensation as too high, but shareholders might want to see more robust growth metrics before agreeing to a future raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Home Federal Bancorp of Louisiana that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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