U.S. Markets closed

Is ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Excessively Paying Its CEO?

Simply Wall St

Frank Sorrentino became the CEO of ConnectOne Bancorp, Inc. (NASDAQ:CNOB) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for ConnectOne Bancorp

How Does Frank Sorrentino's Compensation Compare With Similar Sized Companies?

According to our data, ConnectOne Bancorp, Inc. has a market capitalization of US$797m, and pays its CEO total annual compensation worth US$2.1m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$800k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.

So Frank Sorrentino 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.

You can see a visual representation of the CEO compensation at ConnectOne Bancorp, below.

NasdaqGS:CNOB CEO Compensation, September 15th 2019

Is ConnectOne Bancorp, Inc. Growing?

On average over the last three years, ConnectOne Bancorp, Inc. has grown earnings per share (EPS) by 21% each year (using a line of best fit). In the last year, its revenue is up 23%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has ConnectOne Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 28% over three years, ConnectOne Bancorp, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Frank Sorrentino is paid around what is normal the leaders of comparable size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling ConnectOne Bancorp shares (free trial).

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.