We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Parke Bancorp, Inc.'s (NASDAQ:PKBK) CEO For Now

CEO Vito Pantilione has done a decent job of delivering relatively good performance at Parke Bancorp, Inc. (NASDAQ:PKBK) recently. 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 04 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Parke Bancorp

How Does Total Compensation For Vito Pantilione Compare With Other Companies In The Industry?

Our data indicates that Parke Bancorp, Inc. has a market capitalization of US$228m, and total annual CEO compensation was reported as US$2.0m for the year to December 2020. We note that's an increase of 33% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$955k.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$763k. This suggests that Vito Pantilione is paid more than the median for the industry. Moreover, Vito Pantilione also holds US$5.9m worth of Parke Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$955k	US$812k	47%
Other	US$1.1m	US$731k	53%
Total Compensation	US$2.0m	US$1.5m	100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Although there is a difference in how total compensation is set, Parke Bancorp more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Parke Bancorp, Inc.'s Growth

Parke Bancorp, Inc. has seen its earnings per share (EPS) increase by 23% a year over the past three years. Its revenue is up 6.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Parke Bancorp, Inc. Been A Good Investment?

Parke Bancorp, Inc. has not done too badly by shareholders, with a total return of 8.6%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Parke Bancorp that investors should think about before committing capital to this stock.

Important note: Parke Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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