Why First Financial Northwest, Inc.'s (NASDAQ:FFNW) CEO Pay Matters To You
Joe Kiley became the CEO of First Financial Northwest, Inc. (NASDAQ:FFNW) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for First Financial Northwest
How Does Joe Kiley's Compensation Compare With Similar Sized Companies?
According to our data, First Financial Northwest, Inc. has a market capitalization of US$148m, and paid its CEO total annual compensation worth US$678k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$451k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$526k.
So Joe Kiley 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 Financial Northwest has changed from year to year.
Is First Financial Northwest, Inc. Growing?
Over the last three years First Financial Northwest, Inc. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). Its revenue is down 14% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has First Financial Northwest, Inc. Been A Good Investment?
Given the total loss of 12% over three years, many shareholders in First Financial Northwest, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Joe Kiley is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Financial Northwest.
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.
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.
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