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Is Brookline Bancorp, Inc.'s (NASDAQ:BRKL) CEO Salary Justified?

Simply Wall St

Paul Perrault has been the CEO of Brookline Bancorp, Inc. (NASDAQ:BRKL) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

View our latest analysis for Brookline Bancorp

How Does Paul Perrault's Compensation Compare With Similar Sized Companies?

According to our data, Brookline Bancorp, Inc. has a market capitalization of US$961m, and paid its CEO total annual compensation worth US$2.2m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$780k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. 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$2.8m.

So Paul Perrault 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 Brookline Bancorp has changed from year to year.

NasdaqGS:BRKL CEO Compensation, March 10th 2020

Is Brookline Bancorp, Inc. Growing?

Brookline Bancorp, Inc. has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.1%.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Brookline Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 16% over three years, some Brookline Bancorp, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Paul Perrault is paid around what is normal for the leaders of comparable size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Moving away from CEO compensation for the moment, we've identified 2 warning signs for Brookline Bancorp that you should be aware of before investing.

If you want to buy a stock that is better than Brookline Bancorp, this free list of high return, low debt companies is a great place to look.

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.