In 2015 Frank Leto was appointed CEO of Bryn Mawr Bank Corporation (NASDAQ:BMTC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Frank Leto’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bryn Mawr Bank Corporation is worth US$784m, and total annual CEO compensation is US$1.5m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$569k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.3m.
Most shareholders would consider it a positive that Frank Leto takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Bryn Mawr Bank has changed from year to year.
Is Bryn Mawr Bank Corporation Growing?
Over the last three years Bryn Mawr Bank Corporation has grown its earnings per share (EPS) by an average of 15% per year. In the last year, its revenue is up 24%.
This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Bryn Mawr Bank Corporation Been A Good Investment?
Most shareholders would probably be pleased with Bryn Mawr Bank Corporation for providing a total return of 40% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Bryn Mawr Bank Corporation remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Frank Leto deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bryn Mawr Bank.
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.