Jack Kopnisky became the CEO of Sterling Bancorp (NYSE:STL) in 2011. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jack Kopnisky’s Compensation Compare With Similar Sized Companies?
According to our data, Sterling Bancorp has a market capitalization of US$4.2b, and pays its CEO total annual compensation worth US$3.4m. We note that’s an increase of 18% above last year. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$5.0m.
Most shareholders would consider it a positive that Jack Kopnisky takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Sterling Bancorp has changed over time.
Is Sterling Bancorp Growing?
Sterling Bancorp has increased its earnings per share (EPS) by an average of 17% a year, over the last three years It achieved revenue growth of 110% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Sterling Bancorp Been A Good Investment?
Sterling Bancorp has served shareholders reasonably well, with a total return of 20% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Sterling Bancorp is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggest the pay is modest. The total shareholder return might not be amazing, but that doesn’t mean that Jack Kopnisky is paid too much.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sterling Bancorp.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.