Performance at Investors Bancorp, Inc. (NASDAQ:ISBC) has been reasonably good and CEO Kevin Cummings has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.
Comparing Investors Bancorp, Inc.'s CEO Compensation With the industry
According to our data, Investors Bancorp, Inc. has a market capitalization of US$3.5b, and paid its CEO total annual compensation worth US$6.1m over the year to December 2020. We note that's an increase of 12% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.
For comparison, other companies in the same industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$3.4m. Accordingly, our analysis reveals that Investors Bancorp, Inc. pays Kevin Cummings north of the industry median. Furthermore, Kevin Cummings directly owns US$27m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. In Investors Bancorp's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Investors Bancorp, Inc.'s Growth Numbers
Investors Bancorp, Inc. has seen its earnings per share (EPS) increase by 31% a year over the past three years. It achieved revenue growth of 14% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Investors Bancorp, Inc. Been A Good Investment?
Investors Bancorp, Inc. has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
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 1 warning sign for Investors Bancorp that investors should think about before committing capital to this stock.
Switching gears from Investors 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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