Key Insights

• QCR Holdings to hold its Annual General Meeting on 16th of May
• Total pay for CEO Larry Helling includes US$437.7k salary
• The overall pay is comparable to the industry average
• QCR Holdings' total shareholder return over the past three years was 29% while its EPS grew by 16% over the past three years

CEO Larry Helling has done a decent job of delivering relatively good performance at QCR Holdings, Inc. (NASDAQ:QCRH) recently. As shareholders go into the upcoming AGM on 16th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

How Does Total Compensation For Larry Helling Compare With Other Companies In The Industry?

Our data indicates that QCR Holdings, Inc. has a market capitalization of US$986m, and total annual CEO compensation was reported as US$1.8m for the year to December 2023. That's slightly lower by 3.0% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$438k.

On examining similar-sized companies in the American Banks industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$1.9m. So it looks like QCR Holdings compensates Larry Helling in line with the median for the industry. Furthermore, Larry Helling directly owns US$5.8m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. In QCR Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

QCR Holdings, Inc.'s Growth

QCR Holdings, Inc.'s earnings per share (EPS) grew 16% per year over the last three years. In the last year, its revenue is up 6.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has QCR Holdings, Inc. Been A Good Investment?

QCR Holdings, Inc. has generated a total shareholder return of 29% over three years, so most shareholders would 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for QCR Holdings that investors should be aware of in a dynamic business environment.

Switching gears from QCR Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.