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Performance at Alerus Financial Corporation (NASDAQ:ALRS) has been reasonably good and CEO Randy Newman has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 11 May 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Alerus Financial
How Does Total Compensation For Randy Newman Compare With Other Companies In The Industry?
At the time of writing, our data shows that Alerus Financial Corporation has a market capitalization of US$510m, and reported total annual CEO compensation of US$1.6m for the year to December 2020. That's just a smallish increase of 5.1% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$590k.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$1.6m. So it looks like Alerus Financial compensates Randy Newman in line with the median for the industry. Moreover, Randy Newman also holds US$21m worth of Alerus Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$590k | US$570k | 38% |
| Other | US$966k | US$910k | 62% |
| Total Compensation | US$1.6m | US$1.5m | 100% |
Speaking on an industry level, nearly 26% of total compensation represents salary, while the remainder of 74% is other remuneration. According to our research, Alerus Financial has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Alerus Financial Corporation's Growth
Alerus Financial Corporation has seen its earnings per share (EPS) increase by 35% a year over the past three years. Its revenue is up 32% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Alerus Financial Corporation Been A Good Investment?
Alerus Financial Corporation has served shareholders reasonably well, with a total return of 27% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.