Should You Worry About Prudential Bancorp, Inc.'s (NASDAQ:PBIP) CEO Pay Cheque?

In 2016 Dennis Pollack was appointed CEO of Prudential Bancorp, Inc. (NASDAQ:PBIP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

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Check out our latest analysis for Prudential Bancorp

How Does Dennis Pollack's Compensation Compare With Similar Sized Companies?

Our data indicates that Prudential Bancorp, Inc. is worth US$162m, and total annual CEO compensation is US$1.2m. (This is based on the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$398k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.

So Dennis Pollack receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Prudential Bancorp, below.

Is Prudential Bancorp, Inc. Growing?

Over the last three years Prudential Bancorp, Inc. has grown its earnings per share (EPS) by an average of 61% per year (using a line of best fit). It achieved revenue growth of 2.6% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Prudential Bancorp, Inc. Been A Good Investment?

Prudential Bancorp, Inc. has served shareholders reasonably well, with a total return of 27% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Dennis Pollack is paid around what is normal the leaders of comparable size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Prudential Bancorp shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.