In 2016 Michael Carrazza was appointed CEO of Patriot National Bancorp, Inc. (NASDAQ:PNBK). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Michael Carrazza’s Compensation Compare With Similar Sized Companies?
According to our data, Patriot National Bancorp, Inc. has a market capitalization of US$57m, and pays its CEO total annual compensation worth US$305k. (This figure is for the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$300k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$417k.
So Michael Carrazza receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Patriot National Bancorp, below.
Is Patriot National Bancorp, Inc. Growing?
On average over the last three years, Patriot National Bancorp, Inc. has grown earnings per share (EPS) by 24% each year (using a line of best fit). It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Patriot National Bancorp, Inc. Been A Good Investment?
Patriot National Bancorp, Inc. has not done too badly by shareholders, with a total return of 3.6%, over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Michael Carrazza is paid around what is normal the leaders of comparable 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 Patriot National Bancorp insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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