Michael Pugh became the CEO of Carver Bancorp, Inc. (NASDAQ:CARV) 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Michael Pugh’s Compensation Compare With Similar Sized Companies?
Our data indicates that Carver Bancorp, Inc. is worth US$11m, and total annual CEO compensation was reported as US$384k for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$378k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$523k.
So Michael Pugh is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Carver Bancorp, below.
Is Carver Bancorp, Inc. Growing?
On average over the last three years, Carver Bancorp, Inc. has shrunk earnings per share by 15% each year (measured with a line of best fit). Its revenue is down 34% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Carver Bancorp, Inc. Been A Good Investment?
With a three year total loss of 19%, Carver Bancorp, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Michael Pugh is paid around what is normal the leaders of comparable size companies.
The company isn’t growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Carver Bancorp.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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