Tom Fontaine has been the CEO of Wellesley Bancorp, Inc. (NASDAQ:WEBK) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Tom Fontaine’s Compensation Compare With Similar Sized Companies?
According to our data, Wellesley Bancorp, Inc. has a market capitalization of US$76m, and paid its CEO total annual compensation worth US$728k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$399k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$491k.
Thus we can conclude that Tom Fontaine receives more in total compensation than the median of a group of companies in the same market, and of similar size to Wellesley Bancorp, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. Although we don’t have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
You can see a visual representation of the CEO compensation at Wellesley Bancorp, below.
Is Wellesley Bancorp, Inc. Growing?
Wellesley Bancorp, Inc. has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). Its revenue is up 10% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Has Wellesley Bancorp, Inc. Been A Good Investment?
With a total shareholder return of 29% over three years, Wellesley Bancorp, Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Wellesley Bancorp, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wellesley Bancorp.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.