Tom Coughlin became the CEO of BCB Bancorp, Inc. (NASDAQ:BCBP) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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 Tom Coughlin’s Compensation Compare With Similar Sized Companies?
Our data indicates that BCB Bancorp, Inc. is worth US$230m, and total annual CEO compensation was reported as US$568k for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$455k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.
Most shareholders would consider it a positive that Tom Coughlin takes less total compensation than the CEOs of most similar size companies, leaving more 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 a visual representation of the CEO compensation at BCB Bancorp, below.
Is BCB Bancorp, Inc. Growing?
Over the last three years BCB Bancorp, Inc. has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). It achieved revenue growth of 9.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has BCB Bancorp, Inc. Been A Good Investment?
BCB Bancorp, Inc. has not done too badly by shareholders, with a total return of 4.1%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that BCB Bancorp, Inc. remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Tom Coughlin is overcompensated. It’s good to see reasonable payment of the CEO, even while the business improves. But it would be nice if insiders were also buying shares. Shareholders may want to check for free if BCB Bancorp insiders are buying or selling shares.
If you want to buy a stock that is better than BCB Bancorp, this free list of high return, low debt companies is a great place to look.
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