Russ Colombo became the CEO of Bank of Marin Bancorp (NASDAQ:BMRC) in 2006. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Russ Colombo’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bank of Marin Bancorp has a market cap of US$572m, and is paying total annual CEO compensation of US$1.2m. (This number is for the twelve months until December 2018). That’s a fairly small increase of 4.9% on year before. We think total compensation is more important but we note that the CEO salary is lower, at US$464k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
So Russ Colombo receives a similar amount to the median CEO pay, amongst 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 Bank of Marin Bancorp has changed from year to year.
Is Bank of Marin Bancorp Growing?
Over the last three years Bank of Marin Bancorp has grown its earnings per share (EPS) by an average of 6.7% per year (using a line of best fit). In the last year, its revenue is up 19%.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while performance isn’t amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bank of Marin Bancorp Been A Good Investment?
Most shareholders would probably be pleased with Bank of Marin Bancorp for providing a total return of 78% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Russ Colombo is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bank of Marin 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.