What Can We Learn About Fidelity D & D Bancorp's (NASDAQ:FDBC) CEO Compensation?

Simply Wall St
November 09, 2020

Dan Santaniello has been the CEO of Fidelity D & D Bancorp, Inc. (NASDAQ:FDBC) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Fidelity D & D Bancorp pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Fidelity D & D Bancorp

Comparing Fidelity D & D Bancorp, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Fidelity D & D Bancorp, Inc. has a market capitalization of US$242m, and reported total annual CEO compensation of US$681k for the year to December 2019. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$305k.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$887k. So it looks like Fidelity D & D Bancorp compensates Dan Santaniello in line with the median for the industry. Moreover, Dan Santaniello also holds US$2.0m worth of Fidelity D & D Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20192018Proportion (2019)
Salary US$305k US$281k 45%
Other US$376k US$386k 55%
Total CompensationUS$681k US$667k100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Our data reveals that Fidelity D & D Bancorp allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

NasdaqGM:FDBC CEO Compensation November 9th 2020

A Look at Fidelity D & D Bancorp, Inc.'s Growth Numbers

Fidelity D & D Bancorp, Inc.'s earnings per share (EPS) grew 2.6% per year over the last three years. It achieved revenue growth of 19% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Fidelity D & D Bancorp, Inc. Been A Good Investment?

We think that the total shareholder return of 33%, over three years, would leave most Fidelity D & D Bancorp, Inc. shareholders smiling. 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.

In Summary...

As we noted earlier, Fidelity D & D Bancorp pays its CEO in line with similar-sized companies belonging to the same industry. But the company has been found wanting in terms of EPS growth over the past three years. On the other hand, shareholder returns over the same period have been very healthy. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Fidelity D & D Bancorp that investors should be aware of in a dynamic business environment.

Switching gears from Fidelity D & D Bancorp, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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