Is Old Point Financial Corporation's (NASDAQ:OPOF) CEO Paid At A Competitive Rate?

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The CEO of Old Point Financial Corporation (NASDAQ:OPOF) is Rob Shuford. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Old Point Financial

How Does Rob Shuford's Compensation Compare With Similar Sized Companies?

Our data indicates that Old Point Financial Corporation is worth US$110m, and total annual CEO compensation is US$349k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$300k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$428k.

So Rob Shuford 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 Old Point Financial has changed from year to year.

Is Old Point Financial Corporation Growing?

Old Point Financial Corporation has reduced its earnings per share by an average of 30% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 13%.

Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Old Point Financial Corporation Been A Good Investment?

Old Point Financial Corporation has served shareholders reasonably well, with a total return of 18% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Rob Shuford is paid around what is normal the leaders of comparable size companies.

We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Whatever your view on compensation, you might want to check if insiders are buying or selling Old Point Financial 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.