Sandro DiNello became the CEO of Flagstar Bancorp, Inc. (NYSE:FBC) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Sandro DiNello's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Flagstar Bancorp, Inc. has a market cap of US$2.2b, and reported total annual CEO compensation of US$16m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$950k. We further remind readers that the CEO may face performance requirements to receive the non-salary part 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$4.1m.
It would therefore appear that Flagstar Bancorp, Inc. pays Sandro DiNello more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Flagstar Bancorp, below.
Is Flagstar Bancorp, Inc. Growing?
On average over the last three years, Flagstar Bancorp, Inc. has grown earnings per share (EPS) by 4.5% each year (using a line of best fit). In the last year, its revenue is up 10%.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Flagstar Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Flagstar Bancorp, Inc. for providing a total return of 43% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Flagstar Bancorp, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Flagstar Bancorp (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 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.