Brad Bernstein became the CEO of FlexShopper, Inc. (NASDAQ:FPAY) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Brad Bernstein’s Compensation Compare With Similar Sized Companies?
Our data indicates that FlexShopper, Inc. is worth US$28m, and total annual CEO compensation is US$453k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$330k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$474k.
That means Brad Bernstein receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at FlexShopper has changed over time.
Is FlexShopper, Inc. Growing?
FlexShopper, Inc. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 44%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
Has FlexShopper, Inc. Been A Good Investment?
Since shareholders would have lost about 70% over three years, some FlexShopper, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Brad Bernstein is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FlexShopper.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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