In 2013 Dave Mansfield was appointed CEO of Provident Bancorp, Inc. (NASDAQ:PVBC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
How Does Dave Mansfield’s Compensation Compare With Similar Sized Companies?
Our data indicates that Provident Bancorp, Inc. is worth US$212m, and total annual CEO compensation is US$711k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$459k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$930k.
That means Dave Mansfield receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Provident Bancorp has changed over time.
Is Provident Bancorp, Inc. Growing?
Provident Bancorp, Inc. has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). Its revenue is down -2.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Provident Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 72%, over three years, would leave most Provident Bancorp, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Dave Mansfield is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Provident Bancorp (free visualization of insider trades).
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.
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