Is Bank of Marin Bancorp (NASDAQ:BMRC) Excessively Paying Its CEO?

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Russ Colombo became the CEO of Bank of Marin Bancorp (NASDAQ:BMRC) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Bank of Marin Bancorp

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$577m, and is paying total annual CEO compensation of US$1.2m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$451k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.5m.

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.

You can see a visual representation of the CEO compensation at Bank of Marin Bancorp, below.

NASDAQCM:BMRC CEO Compensation February 1st 19
NASDAQCM:BMRC CEO Compensation February 1st 19

Is Bank of Marin Bancorp Growing?

Bank of Marin Bancorp has increased its earnings per share (EPS) by an average of 2.9% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 23%.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Bank of Marin Bancorp Been A Good Investment?

I think that the total shareholder return of 74%, over three years, would leave most Bank of Marin Bancorp shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Russ Colombo is paid around what is normal the leaders of comparable size companies.

While the growth could be better, the shareholder returns are clearly good. 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.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.