Our Take On Old Second Bancorp, Inc.’s (NASDAQ:OSBC) CEO Salary
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Jim Eccher has been the CEO of Old Second Bancorp, Inc. (NASDAQ:OSBC) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
View our latest analysis for Old Second Bancorp
How Does Jim Eccher’s Compensation Compare With Similar Sized Companies?
Our data indicates that Old Second Bancorp, Inc. is worth US$429m, and total annual CEO compensation is US$1.0m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$474k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.5m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Old Second Bancorp has changed from year to year.
Is Old Second Bancorp, Inc. Growing?
On average over the last three years, Old Second Bancorp, Inc. has grown earnings per share (EPS) by 25% each year (using a line of best fit). Its revenue is up 16% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Old Second Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Old Second Bancorp, Inc. for providing a total return of 124% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
It appears that Old Second Bancorp, Inc. remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Jim Eccher deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Old Second Bancorp shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.
