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

Simply Wall St

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In 2007 Don Gibson was appointed CEO of Greene County Bancorp, Inc. (NASDAQ:GCBC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Greene County Bancorp

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

Our data indicates that Greene County Bancorp, Inc. is worth US$258m, and total annual CEO compensation is US$1.1m. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$443k. 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$1.0m.

That means Don Gibson 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, below, how CEO compensation at Greene County Bancorp has changed over time.

NasdaqCM:GCBC CEO Compensation, April 29th 2019

Is Greene County Bancorp, Inc. Growing?

Over the last three years Greene County Bancorp, Inc. has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). In the last year, its revenue is up 17%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

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

Boasting a total shareholder return of 77% over three years, Greene County Bancorp, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Don Gibson is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Greene County Bancorp shares with their own money (free access).

Important note: Greene County 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.

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 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.