Marty Plourd became the CEO of Community West Bancshares (NASDAQ:CWBC) in 2012. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Marty Plourd’s Compensation Compare With Similar Sized Companies?
Our data indicates that Community West Bancshares is worth US$85m, and total annual CEO compensation is US$651k. That’s a modest increase of 3.2% on the prior year year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$296k.
It would therefore appear that Community West Bancshares pays Marty Plourd more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 a visual representation of the CEO compensation at Community West Bancshares, below.
Is Community West Bancshares Growing?
Community West Bancshares has increased its earnings per share (EPS) by an average of 22% a year, over the last three years It achieved revenue growth of 8.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Community West Bancshares Been A Good Investment?
Most shareholders would probably be pleased with Community West Bancshares for providing a total return of 54% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Community West Bancshares, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.