Is Sterling Bancorp (NYSE:STL) Overpaying Its CEO?

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Jack Kopnisky became the CEO of Sterling Bancorp (NYSE:STL) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Sterling Bancorp

How Does Jack Kopnisky’s Compensation Compare With Similar Sized Companies?

Our data indicates that Sterling Bancorp is worth US$4.3b, and total annual CEO compensation is US$4.3m. (This number is for the twelve months until December 2018). We note that’s an increase of 27% above last year. While we always look at total compensation first, we note that the salary component is less, at US$850k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.2m.

So Jack Kopnisky is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Sterling Bancorp has changed from year to year.

NYSE:STL CEO Compensation, June 25th 2019
NYSE:STL CEO Compensation, June 25th 2019

Is Sterling Bancorp Growing?

Over the last three years Sterling Bancorp has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). It achieved revenue growth of 38% 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?

I think that the total shareholder return of 44%, over three years, would leave most Sterling Bancorp shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Jack Kopnisky is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sterling Bancorp (free visualization of insider trades).

If you want to buy a stock that is better than Sterling Bancorp, this free list of high return, low debt companies is a great place to look.

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 editorial-team@simplywallst.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.