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Is Bridge Bancorp, Inc.’s (NASDAQ:BDGE) CEO Paid Enough Relative To Peers?

Simply Wall St

Kevin O’Connor became the CEO of Bridge Bancorp, Inc. (NASDAQ:BDGE) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Bridge Bancorp

How Does Kevin O’Connor’s Compensation Compare With Similar Sized Companies?

Our data indicates that Bridge Bancorp, Inc. is worth US$647m, and total annual CEO compensation is US$1.6m. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$625k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.2m.

So Kevin O’Connor receives a similar amount to the median CEO pay, amongst 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 Bridge Bancorp has changed from year to year.

NasdaqGS:BDGE CEO Compensation, March 4th 2019

Is Bridge Bancorp, Inc. Growing?

Over the last three years Bridge Bancorp, Inc. has shrunk its earnings per share by an average of 10% per year (measured with a line of best fit). In the last year, its revenue is up 12%.

Unfortunately, earnings per share have trended lower over the last three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Bridge Bancorp, Inc. Been A Good Investment?

Bridge Bancorp, Inc. has served shareholders reasonably well, with a total return of 26% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Remuneration for Kevin O’Connor is close enough to the median pay for a CEO of a similar sized company .

We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. We wouldn’t say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bridge Bancorp (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.