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Is HarborOne Bancorp, Inc.'s (NASDAQ:HONE) CEO Pay Fair?

Simply Wall St

In 2016 Jim Blake was appointed CEO of HarborOne Bancorp, Inc. (NASDAQ:HONE). 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.

See our latest analysis for HarborOne Bancorp

How Does Jim Blake's Compensation Compare With Similar Sized Companies?

According to our data, HarborOne Bancorp, Inc. has a market capitalization of US$597m, and pays its CEO total annual compensation worth US$1.8m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$740k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.

That means Jim Blake receives fairly typical remuneration for the CEO of a company that size. 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.

You can see, below, how CEO compensation at HarborOne Bancorp has changed over time.

NasdaqGS:HONE CEO Compensation, August 21st 2019

Is HarborOne Bancorp, Inc. Growing?

Over the last three years HarborOne Bancorp, Inc. has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has HarborOne Bancorp, Inc. Been A Good Investment?

Given the total loss of 28% over three years, many shareholders in HarborOne Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Jim Blake is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling HarborOne Bancorp (free visualization of insider trades).

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

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.