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John Fitzgerald has been the CEO of Magyar Bancorp, Inc. (NASDAQ:MGYR) since 2010. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Fitzgerald's Compensation Compare With Similar Sized Companies?
According to our data, Magyar Bancorp, Inc. has a market capitalization of US$67m, and pays its CEO total annual compensation worth US$617k. (This figure is for the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$411k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$493k.
That means John Fitzgerald 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.
The graphic below shows how CEO compensation at Magyar Bancorp has changed from year to year.
Is Magyar Bancorp, Inc. Growing?
Magyar Bancorp, Inc. has increased its earnings per share (EPS) by an average of 36% a year, over the last three years (using a line of best fit). Its revenue is up 6.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Magyar Bancorp, Inc. Been A Good Investment?
With a total shareholder return of 16% over three years, Magyar Bancorp, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
John Fitzgerald is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if Magyar Bancorp insiders are buying or selling shares.
If you want to buy a stock that is better than Magyar Bancorp, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.