Don Gibson has been the CEO of Greene County Bancorp, Inc. (NASDAQ:GCBC) since 2007. 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 Don Gibson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Greene County Bancorp, Inc. is worth US$248m, and total annual CEO compensation was reported as US$1.3m for the year to June 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$488k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. 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.
So Don Gibson 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.
The graphic below shows how CEO compensation at Greene County Bancorp has changed from year to year.
Is Greene County Bancorp, Inc. Growing?
Greene County Bancorp, Inc. has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Greene County Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Greene County Bancorp, Inc. for providing a total return of 35% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Don Gibson is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Greene County Bancorp shares (free trial).
If you want to buy a stock that is better than Greene County Bancorp, 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 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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