Joseph Ficalora became the CEO of New York Community Bancorp, Inc. (NYSE:NYCB) in 1993, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for New York Community Bancorp.
Comparing New York Community Bancorp, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that New York Community Bancorp, Inc. has a market capitalization of US$4.0b, and reported total annual CEO compensation of US$7.6m for the year to December 2019. We note that's an increase of 67% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.
On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$7.6m. From this we gather that Joseph Ficalora is paid around the median for CEOs in the industry. What's more, Joseph Ficalora holds US$61m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. New York Community Bancorp pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at New York Community Bancorp, Inc.'s Growth Numbers
Over the last three years, New York Community Bancorp, Inc. has shrunk its earnings per share by 4.8% per year. Its revenue is down 3.9% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has New York Community Bancorp, Inc. Been A Good Investment?
With a three year total loss of 20% for the shareholders, New York Community Bancorp, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, New York Community Bancorp, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for New York Community Bancorp that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
If you decide to trade New York Community Bancorp, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.