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Is Bridge Bancorp, Inc.'s (NASDAQ:BDGE) CEO Overpaid Relative To Its Peers?

Simply Wall St

In 2008 Kevin O'Connor was appointed CEO of Bridge Bancorp, Inc. (NASDAQ:BDGE). 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?

At the time of writing, our data says that Bridge Bancorp, Inc. has a market cap of US$640m, and reported total annual CEO compensation of US$1.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$625k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.5m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Bridge Bancorp has changed over time.

NasdaqGS:BDGE CEO Compensation, January 15th 2020

Is Bridge Bancorp, Inc. Growing?

Over the last three years Bridge Bancorp, Inc. has grown its earnings per share (EPS) by an average of 3.9% per year (using a line of best fit). In the last year, its revenue is up 16%.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.

Has Bridge Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 0.7% over three years, Bridge Bancorp, Inc. has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

It appears that Bridge Bancorp, Inc. remunerates its CEO below most similar sized companies.

Kevin O'Connor receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bridge Bancorp.

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

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.

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. Thank you for reading.