Shareholders Will Likely Find Manhattan Bridge Capital, Inc.'s (NASDAQ:LOAN) CEO Compensation Acceptable

Key Insights

• Manhattan Bridge Capital will host its Annual General Meeting on 20th of June
• CEO Assaf Ran's total compensation includes salary of US$350.0k
• The overall pay is 53% below the industry average
• Manhattan Bridge Capital's three-year loss to shareholders was 5.1% while its EPS grew by 3.5% over the past three years

Shareholders may be wondering what CEO Assaf Ran plans to do to improve the less than great performance at Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) recently. At the next AGM coming up on 20th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Manhattan Bridge Capital

Comparing Manhattan Bridge Capital, Inc.'s CEO Compensation With The Industry

According to our data, Manhattan Bridge Capital, Inc. has a market capitalization of US$58m, and paid its CEO total annual compensation worth US$529k over the year to December 2023. That's a notable increase of 41% on last year. We note that the salary portion, which stands at US$350.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the American Mortgage REITs industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.1m. In other words, Manhattan Bridge Capital pays its CEO lower than the industry median. What's more, Assaf Ran holds US$13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$350k	US$329k	66%
Other	US$179k	US$46k	34%
Total Compensation	US$529k	US$375k	100%

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Manhattan Bridge Capital is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Manhattan Bridge Capital, Inc.'s Growth Numbers

Manhattan Bridge Capital, Inc. has seen its earnings per share (EPS) increase by 3.5% a year over the past three years. In the last year, its revenue is up 10%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Manhattan Bridge Capital, Inc. Been A Good Investment?

With a three year total loss of 5.1% for the shareholders, Manhattan Bridge Capital, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

It may not be surprising to some that the recent weak performance in the share price may be driven in part by rather flat EPS growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 3 which don't sit too well with us) in Manhattan Bridge Capital we think you should know about.

Switching gears from Manhattan Bridge Capital, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com