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Does Howard Bancorp, Inc.'s (NASDAQ:HBMD) CEO Pay Reflect Performance?

Simply Wall St

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Mary Scully has been the CEO of Howard Bancorp, Inc. (NASDAQ:HBMD) since 2005. 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 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.

See our latest analysis for Howard Bancorp

How Does Mary Scully's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Howard Bancorp, Inc. has a market cap of US$276m, and is paying total annual CEO compensation of US$1.0m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$511k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.

That means Mary Scully receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

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

NasdaqCM:HBMD CEO Compensation, July 19th 2019

Is Howard Bancorp, Inc. Growing?

On average over the last three years, Howard Bancorp, Inc. has shrunk earnings per share by 47% each year (measured with a line of best fit). It achieved revenue growth of 42% over the last year.

Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.

Has Howard Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 13% over three years, Howard Bancorp, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Mary Scully is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Howard Bancorp.

Important note: Howard Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.