Under the guidance of CEO Craig Montanaro, Kearny Financial Corp. (NASDAQ:KRNY) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.
Comparing Kearny Financial Corp.'s CEO Compensation With the industry
According to our data, Kearny Financial Corp. has a market capitalization of US$971m, and paid its CEO total annual compensation worth US$1.1m over the year to June 2021. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$650.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$1.5m. From this we gather that Craig Montanaro is paid around the median for CEOs in the industry. Furthermore, Craig Montanaro directly owns US$4.7m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. Kearny Financial is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Kearny Financial Corp.'s Growth Numbers
Kearny Financial Corp. has seen its earnings per share (EPS) increase by 53% a year over the past three years. It achieved revenue growth of 25% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Kearny Financial Corp. Been A Good Investment?
With a total shareholder return of 8.4% over three years, Kearny Financial Corp. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
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 Kearny Financial that investors should be aware of in a dynamic business environment.
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.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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