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Is Greene County Bancorp, Inc.'s (NASDAQ:GCBC) CEO Paid At A Competitive Rate?

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Simply Wall St
·4 min read
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In 2007, Don Gibson was appointed CEO of Greene County Bancorp, Inc. (NASDAQ:GCBC). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Greene County Bancorp

How Does Don Gibson's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Greene County Bancorp, Inc. has a market cap of US$176m, and reported total annual CEO compensation of US$1.3m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at US$488k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.4m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Greene County Bancorp. Speaking on an industry level, we can see that nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Readers will want to know that Greene County Bancorp pays a modest slice of remuneration through salary, as compared to the wider sector.

So Don Gibson 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 Greene County Bancorp has changed from year to year.

NasdaqCM:GCBC CEO Compensation May 19th 2020
NasdaqCM:GCBC CEO Compensation May 19th 2020

Is Greene County Bancorp, Inc. Growing?

On average over the last three years, Greene County Bancorp, Inc. has seen earnings per share (EPS) move in a favourable direction by 18% each year (using a line of best fit). In the last year, its revenue is up 5.9%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Greene County Bancorp, Inc. Been A Good Investment?

Given the total loss of 10% over three years, many shareholders in Greene County Bancorp, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Don Gibson is paid around what is normal for the leaders of comparable size companies.

We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Moving away from CEO compensation for the moment, we've identified 1 warning sign for Greene County Bancorp that you should be aware of before investing.

If you want to buy a stock that is better than Greene County Bancorp, this free list of high return, low debt companies is a great place to look.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.