In 2008 Kevin O’Connor was appointed CEO of Bridge Bancorp, Inc. (NASDAQ:BDGE). 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kevin O’Connor’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bridge Bancorp, Inc. is worth US$647m, and total annual CEO compensation is US$1.6m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$625k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.2m.
That means Kevin O’Connor receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Bridge Bancorp, below.
Is Bridge Bancorp, Inc. Growing?
Over the last three years Bridge Bancorp, Inc. has shrunk its earnings per share by an average of 10% per year (measured with a line of best fit). In the last year, its revenue is up 12%.
Sadly for shareholders, earnings per share are actually down, over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bridge Bancorp, Inc. Been A Good Investment?
Bridge Bancorp, Inc. has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Kevin O’Connor is paid around what is normal the leaders of comparable size companies.
We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn’t say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bridge Bancorp.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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