Jim Hagan became the CEO of Western New England Bancorp, Inc. (NASDAQ:WNEB) in 2008. 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 Jim Hagan’s Compensation Compare With Similar Sized Companies?
According to our data, Western New England Bancorp, Inc. has a market capitalization of US$282m, and pays its CEO total annual compensation worth US$876k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$432k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$993k.
So Jim Hagan receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Western New England Bancorp has changed from year to year.
Is Western New England Bancorp, Inc. Growing?
Over the last three years Western New England Bancorp, Inc. has grown its earnings per share (EPS) by an average of 11% per year. Its revenue is up 3.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Western New England Bancorp, Inc. Been A Good Investment?
Western New England Bancorp, Inc. has served shareholders reasonably well, with a total return of 22% 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.
Remuneration for Jim Hagan is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Western New England Bancorp shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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 email@example.com.