Key Insights

• Home Federal Bancorp of Louisiana will host its Annual General Meeting on 20th of November
• Total pay for CEO Jim Barlow includes US$312.5k salary
• Total compensation is similar to the industry average
• Home Federal Bancorp of Louisiana's EPS declined by 14% over the past three years while total shareholder loss over the past three years was 31%

The results at Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) have been quite disappointing recently and CEO Jim Barlow bears some responsibility for this. At the upcoming AGM on 20th of November, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

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

Our data indicates that Home Federal Bancorp, Inc. of Louisiana has a market capitalization of US$38m, and total annual CEO compensation was reported as US$639k for the year to June 2024. We note that's an increase of 11% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$312k.

In comparison with other companies in the American Banks industry with market capitalizations under US$200m, the reported median total CEO compensation was US$602k. This suggests that Home Federal Bancorp of Louisiana remunerates its CEO largely in line with the industry average. Furthermore, Jim Barlow directly owns US$2.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Our data reveals that Home Federal Bancorp of Louisiana allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Home Federal Bancorp, Inc. of Louisiana's Growth

Over the last three years, Home Federal Bancorp, Inc. of Louisiana has shrunk its earnings per share by 14% per year. Its revenue is down 14% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

Few Home Federal Bancorp, Inc. of Louisiana shareholders would feel satisfied with the return of -31% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Home Federal Bancorp of Louisiana that investors should look into moving forward.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.