Steve Mumma has been the CEO of New York Mortgage Trust, Inc. (NASDAQ:NYMT) since 2009. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Steve Mumma's Compensation Compare With Similar Sized Companies?
According to our data, New York Mortgage Trust, Inc. has a market capitalization of US$1.6b, and paid its CEO total annual compensation worth US$3.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$800k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.
So Steve Mumma is paid around the average of 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.
The graphic below shows how CEO compensation at New York Mortgage Trust has changed from year to year.
Is New York Mortgage Trust, Inc. Growing?
On average over the last three years, New York Mortgage Trust, Inc. has grown earnings per share (EPS) by 8.0% each year (using a line of best fit). In the last year, its revenue is up 5.4%.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has New York Mortgage Trust, Inc. Been A Good Investment?
Most shareholders would probably be pleased with New York Mortgage Trust, Inc. for providing a total return of 42% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Steve Mumma is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at New York Mortgage Trust.
If you want to buy a stock that is better than New York Mortgage Trust, this free list of high return, low debt companies is a great place to look.
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