Tom Coughlin has been the CEO of BCB Bancorp, Inc. (NASDAQ:BCBP) since 2014. 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 Tom Coughlin’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that BCB Bancorp, Inc. has a market cap of US$210m, and reported total annual CEO compensation of US$568k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$455k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
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 might want to check this free visual report on analyst forecasts for future earnings.
You can see a visual representation of the CEO compensation at BCB Bancorp, below.
Is BCB Bancorp, Inc. Growing?
On average over the last three years, BCB Bancorp, Inc. has grown earnings per share (EPS) by 22% each year (using a line of best fit). It achieved revenue growth of 22% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Has BCB Bancorp, Inc. Been A Good Investment?
BCB Bancorp, Inc. has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. 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.
Many would consider this to indicate that the pay is modest since the business is growing. 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. So you may want to check if insiders are buying BCB Bancorp shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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