Wayne-Kent Bradshaw became the CEO of Broadway Financial Corporation (NASDAQ:BYFC) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Wayne-Kent Bradshaw's Compensation Compare With Similar Sized Companies?
Our data indicates that Broadway Financial Corporation is worth US$42m, and total annual CEO compensation was reported as US$747k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$435k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$515k.
Thus we can conclude that Wayne-Kent Bradshaw receives more in total compensation than the median of a group of companies in the same market, and of similar size to Broadway Financial Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Broadway Financial has changed from year to year.
Is Broadway Financial Corporation Growing?
Broadway Financial Corporation has reduced its earnings per share by an average of 81% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 7.2% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts 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?
Broadway Financial Corporation has generated a total shareholder return of 0.6% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Broadway Financial Corporation with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. And while shareholder returns have been respectable, they have hardly been superb. So we think more research is needed, but we don't think the CEO underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Broadway Financial shares (free trial).
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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. Thank you for reading.