Here's What We Think About Prudential Bancorp's (NASDAQ:PBIP) CEO Pay

Dennis Pollack has been the CEO of Prudential Bancorp, Inc. (NASDAQ:PBIP) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Prudential Bancorp.

View our latest analysis for Prudential Bancorp

How Does Total Compensation For Dennis Pollack Compare With Other Companies In The Industry?

At the time of writing, our data shows that Prudential Bancorp, Inc. has a market capitalization of US$98m, and reported total annual CEO compensation of US$780k for the year to September 2020. That's a modest increase of 7.2% on the prior year. In particular, the salary of US$462.3k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$534k. This suggests that Dennis Pollack is paid more than the median for the industry. Furthermore, Dennis Pollack directly owns US$823k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. Prudential Bancorp is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Prudential Bancorp, Inc.'s Growth Numbers

Over the past three years, Prudential Bancorp, Inc. has seen its earnings per share (EPS) grow by 65% per year. Its revenue is down 4.8% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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 Prudential Bancorp, Inc. Been A Good Investment?

Given the total shareholder loss of 22% over three years, many shareholders in Prudential Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Prudential Bancorp pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Prudential Bancorp that investors should think about before committing capital to this stock.

Switching gears from Prudential 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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