In 2016 John Long was appointed CEO of Glen Burnie Bancorp (NASDAQ:GLBZ). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Long's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Glen Burnie Bancorp has a market cap of US$30m, and is paying total annual CEO compensation of US$343k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$268k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$479k.
That means John Long 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.
You can see a visual representation of the CEO compensation at Glen Burnie Bancorp, below.
Is Glen Burnie Bancorp Growing?
On average over the last three years, Glen Burnie Bancorp has grown earnings per share (EPS) by 7.0% each year (using a line of best fit). Its revenue is up 4.5% over last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Glen Burnie Bancorp Been A Good Investment?
With a total shareholder return of 9.2% over three years, Glen Burnie Bancorp has done okay by shareholders. 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.
John Long is paid around what is normal the leaders of comparable size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Glen Burnie Bancorp.
Important note: Glen Burnie Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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