Frank Leto became the CEO of Bryn Mawr Bank Corporation (NASDAQ:BMTC) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Frank Leto’s Compensation Compare With Similar Sized Companies?
According to our data, Bryn Mawr Bank Corporation has a market capitalization of US$831m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$603k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Bryn Mawr Bank has changed from year to year.
Is Bryn Mawr Bank Corporation Growing?
Over the last three years Bryn Mawr Bank Corporation has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). It achieved revenue growth of 6.3% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Bryn Mawr Bank Corporation Been A Good Investment?
With a total shareholder return of 5.9% over three years, Bryn Mawr Bank Corporation has done okay by shareholders. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It looks like Bryn Mawr Bank Corporation pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Frank Leto is overcompensated. It’s great to see a company that pays its CEO reasonably, even while growing. But for me, it’s even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling Bryn Mawr Bank shares (free trial).
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 firstname.lastname@example.org. 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.
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