This article will reflect on the compensation paid to Travis Thompson who has served as CEO of HV Bancorp, Inc. (NASDAQ:HVBC) since 2013. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for HV Bancorp.
How Does Total Compensation For Travis Thompson Compare With Other Companies In The Industry?
Our data indicates that HV Bancorp, Inc. has a market capitalization of US$29m, and total annual CEO compensation was reported as US$255k for the year to December 2019. Notably, that's a decrease of 62% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$100k.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$518k. That is to say, Travis Thompson is paid under the industry median. Furthermore, Travis Thompson directly owns US$634k worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. It's interesting to note that HV Bancorp allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
HV Bancorp, Inc.'s Growth
HV Bancorp, Inc. has seen its earnings per share (EPS) increase by 25% a year over the past three years. Its revenue is up 61% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 HV Bancorp, Inc. Been A Good Investment?
With a three year total loss of 8.6% for the shareholders, HV Bancorp, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Travis is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for HV Bancorp that you should be aware of before investing.
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.
When trading HV Bancorp or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.