Should You Worry About Bancorp 34, Inc.’s (NASDAQ:BCTF) CEO Pay?

In 2011 Jill Gutierrez was appointed CEO of Bancorp 34, Inc. (NASDAQ:BCTF). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Bancorp 34

How Does Jill Gutierrez’s Compensation Compare With Similar Sized Companies?

According to our data, Bancorp 34, Inc. has a market capitalization of US$45m, and paid its CEO total annual compensation worth US$313k over the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$247k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$520k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Bancorp 34 has changed over time.

NasdaqCM:BCTF CEO Compensation, January 15th 2020
NasdaqCM:BCTF CEO Compensation, January 15th 2020

Is Bancorp 34, Inc. Growing?

On average over the last three years, Bancorp 34, Inc. has shrunk earnings per share by 56% each year (measured with a line of best fit). Its revenue is up 65% over last year.

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. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bancorp 34, Inc. Been A Good Investment?

With a total shareholder return of 32% over three years, Bancorp 34, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Bancorp 34, Inc. is currently paying its CEO below what is normal for companies of its size.

Jill Gutierrez receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, from my perspective. However I do not find the CEO compensation to be concerning. So you may want to check if insiders are buying Bancorp 34 shares with their own money (free access).

If you want to buy a stock that is better than Bancorp 34, this free list of high return, low debt companies is a great place to look.

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.

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