Jim Ford became the CEO of Central Valley Community Bancorp (NASDAQ:CVCY) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Jim Ford's Compensation Compare With Similar Sized Companies?
According to our data, Central Valley Community Bancorp has a market capitalization of US$267m, and pays its CEO total annual compensation worth US$659k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$336k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.
A first glance this seems like a real positive for shareholders, since Jim Ford is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Central Valley Community Bancorp has changed from year to year.
Is Central Valley Community Bancorp Growing?
Central Valley Community Bancorp has increased its earnings per share (EPS) by an average of 3.8% a year, over the last three years (using a line of best fit). It achieved revenue growth of 8.4% over the last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has Central Valley Community Bancorp Been A Good Investment?
Boasting a total shareholder return of 36% over three years, Central Valley Community Bancorp has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Central Valley Community Bancorp remunerates its CEO below most similar sized companies.
It's well worth noting that while Jim Ford is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. So you may want to check if insiders are buying Central Valley Community Bancorp shares with their own money (free access).
Important note: Central Valley Community Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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