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In 1986 Allan Kitagawa was appointed CEO of Territorial Bancorp Inc. (NASDAQ:TBNK). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Territorial Bancorp

How Does Allan Kitagawa's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Territorial Bancorp Inc. has a market cap of US$252m, and is paying total annual CEO compensation of US$1.8m. (This is based on the year to December 2018). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$851k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.

As you can see, Allan Kitagawa is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Territorial Bancorp Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Territorial Bancorp, below.

Is Territorial Bancorp Inc. Growing?

Over the last three years Territorial Bancorp Inc. has grown its earnings per share (EPS) by an average of 6.4% per year (using a line of best fit). In the last year, its revenue is up 3.5%.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Territorial Bancorp Inc. Been A Good Investment?

With a total shareholder return of 19% over three years, Territorial Bancorp Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at Territorial Bancorp Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. So you may want to check if insiders are buying Territorial Bancorp shares with their own money (free access).

Important note: Territorial Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.