Is Malvern Bancorp, Inc.'s (NASDAQ:MLVF) CEO Paid At A Competitive Rate?

Tony Weagley has been the CEO of Malvern Bancorp, Inc. (NASDAQ:MLVF) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Malvern Bancorp

How Does Tony Weagley's Compensation Compare With Similar Sized Companies?

According to our data, Malvern Bancorp, Inc. has a market capitalization of US$93m, and paid its CEO total annual compensation worth US$738k over the year to September 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$512k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$589k.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Malvern Bancorp stands. Talking in terms of the sector, salary represented approximately 43% of total compensation out of all the companies we analysed, while other remuneration made up 57% of the pie. It's interesting to note that Malvern Bancorp pays out a greater portion of remuneration through salary, in comparison to the wider industry.

So Tony Weagley receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 a visual representation of the CEO compensation at Malvern Bancorp, below.

Is Malvern Bancorp, Inc. Growing?

On average over the last three years, Malvern Bancorp, Inc. has shrunk earnings per share by 9.1% each year (measured with a line of best fit). Its revenue is up 5.0% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Malvern Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 44% over three years, some Malvern Bancorp, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Tony Weagley is close enough to the median pay for a CEO of a similar sized company .

Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for Malvern Bancorp that investors should be aware of in a dynamic business environment.

Important note: Malvern Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.