Wayne-Kent Bradshaw has been the CEO of Broadway Financial Corporation (NASDAQ:BYFC) since 2012. 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. 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 Wayne-Kent Bradshaw's Compensation Compare With Similar Sized Companies?
Our data indicates that Broadway Financial Corporation is worth US$53m, and total annual CEO compensation is US$747k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$435k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$479k.
As you can see, Wayne-Kent Bradshaw is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Broadway Financial Corporation is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Broadway Financial has changed over time.
Is Broadway Financial Corporation Growing?
On average over the last three years, Broadway Financial Corporation has shrunk earnings per share by 79% each year (measured with a line of best fit). Its revenue is down -4.3% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Broadway Financial Corporation Been A Good Investment?
With a total shareholder return of 9.6% over three years, Broadway Financial Corporation 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.
We compared the total CEO remuneration paid by Broadway Financial Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
And shareholder returns are decent but not great. So you may want to delve deeper, because we don't think the CEO pay is too low. Shareholders may want to check for free if Broadway Financial insiders are buying or selling shares.
If you want to buy a stock that is better than Broadway Financial, this free list of high return, low debt companies is a great place to look.
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