How Much Did ESSA Bancorp's (NASDAQ:ESSA) CEO Pocket Last Year?

Gary Olson became the CEO of ESSA Bancorp, Inc. (NASDAQ:ESSA) in 2006, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for ESSA Bancorp

How Does Total Compensation For Gary Olson Compare With Other Companies In The Industry?

According to our data, ESSA Bancorp, Inc. has a market capitalization of US$141m, and paid its CEO total annual compensation worth US$951k over the year to September 2020. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$463k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$524k. Accordingly, our analysis reveals that ESSA Bancorp, Inc. pays Gary Olson north of the industry median. Furthermore, Gary Olson directly owns US$1.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. ESSA Bancorp sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ESSA Bancorp, Inc.'s Growth

ESSA Bancorp, Inc. has seen its earnings per share (EPS) increase by 26% a year over the past three years. In the last year, its revenue is up 9.6%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ESSA Bancorp, Inc. Been A Good Investment?

Given the total shareholder loss of 5.4% over three years, many shareholders in ESSA Bancorp, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, ESSA Bancorp pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

So you may want to check if insiders are buying ESSA Bancorp shares with their own money (free access).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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