Assaf Ran became the CEO of Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) in 1989, 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 assess whether Manhattan Bridge Capital pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Assaf Ran Compare With Other Companies In The Industry?
At the time of writing, our data shows that Manhattan Bridge Capital, Inc. has a market capitalization of US$50m, and reported total annual CEO compensation of US$262k for the year to December 2019. We note that's a decrease of 33% compared to last year. In particular, the salary of US$254.2k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$311k. So it looks like Manhattan Bridge Capital compensates Assaf Ran in line with the median for the industry. Furthermore, Assaf Ran directly owns US$14m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Manhattan Bridge Capital pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Manhattan Bridge Capital, Inc.'s Growth Numbers
Manhattan Bridge Capital, Inc. has seen its earnings per share (EPS) increase by 4.0% a year over the past three years. Its revenue is down 2.4% over the previous year.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Manhattan Bridge Capital, Inc. Been A Good Investment?
Manhattan Bridge Capital, Inc. has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Assaf receives almost all of their compensation through a salary. As we touched on above, Manhattan Bridge Capital, 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. But the company has failed to produce substantial growth in either EPS or total shareholder return. We'd say that Assaf is remunerated reasonably, but shareholders might be looking for better returns before they agree Assaf deserves a raise.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which is significant) in Manhattan Bridge Capital we think you should know about.
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.
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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.
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