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Is Medallion Financial Corp.'s (NASDAQ:MFIN) CEO Being Overpaid? - Yahoo Finance

In 1996 Alvin Murstein was appointed CEO of Medallion Financial Corp. (NASDAQ:MFIN). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Medallion Financial

How Does Alvin Murstein's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Medallion Financial Corp. has a market cap of US$163m, and reported total annual CEO compensation of US$1.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$869k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.

That means Alvin Murstein receives fairly typical remuneration for the CEO of a company that size. 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.

You can see, below, how CEO compensation at Medallion Financial has changed over time.

NasdaqGS:MFIN CEO Compensation, February 17th 2020

Is Medallion Financial Corp. Growing?

Over the last three years Medallion Financial Corp. has shrunk its earnings per share by an average of 77% per year (measured with a line of best fit). In the last year, its revenue is up 62%.

The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has Medallion Financial Corp. Been A Good Investment?

Most shareholders would probably be pleased with Medallion Financial Corp. for providing a total return of 188% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Alvin Murstein is paid around what is normal the leaders of comparable size companies.

While the growth could be better, the shareholder returns are clearly good. So all things considered I'd venture that the CEO pay is appropriate. So you may want to check if insiders are buying Medallion Financial shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.

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Is Medallion Financial Corp.'s (NASDAQ:MFIN) CEO Being Overpaid? - Yahoo Finance
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