In 2014 Bill Pasenelli was appointed CEO of The Community Financial Corporation (NASDAQ:TCFC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Bill Pasenelli's Compensation Compare With Similar Sized Companies?
According to our data, The Community Financial Corporation has a market capitalization of US$184m, and paid its CEO total annual compensation worth US$910k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$440k. 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.
So Bill Pasenelli receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Community Financial has changed from year to year.
Is The Community Financial Corporation Growing?
On average over the last three years, The Community Financial Corporation has grown earnings per share (EPS) by 17% each year (using a line of best fit). It achieved revenue growth of 7.0% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has The Community Financial Corporation Been A Good Investment?
I think that the total shareholder return of 42%, over three years, would leave most The Community Financial Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Bill Pasenelli is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Community Financial.
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.
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