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Is Bankwell Financial Group, Inc.'s (NASDAQ:BWFG) CEO Salary Justified?

Simply Wall St

Chris Gruseke became the CEO of Bankwell Financial Group, Inc. (NASDAQ:BWFG) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Bankwell Financial Group

How Does Chris Gruseke's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Bankwell Financial Group, Inc. has a market cap of US$216m, and reported total annual CEO compensation of US$1.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$550k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.2m.

So Chris Gruseke is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Bankwell Financial Group has changed from year to year.

NasdaqGM:BWFG CEO Compensation, October 23rd 2019
NasdaqGM:BWFG CEO Compensation, October 23rd 2019

Is Bankwell Financial Group, Inc. Growing?

On average over the last three years, Bankwell Financial Group, Inc. has grown earnings per share (EPS) by 15% each year (using a line of best fit). It saw its revenue drop 2.9% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.

Has Bankwell Financial Group, Inc. Been A Good Investment?

Bankwell Financial Group, Inc. has generated a total shareholder return of 23% 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.

In Summary...

Chris Gruseke is paid around what is normal the leaders of comparable size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Bankwell Financial Group insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.