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Performance at Flushing Financial Corporation (NASDAQ:FFIC) has been reasonably good and CEO John Buran has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18 May 2021. However, some shareholders may still want to keep CEO compensation within reason.
Comparing Flushing Financial Corporation's CEO Compensation With the industry
Our data indicates that Flushing Financial Corporation has a market capitalization of US$729m, and total annual CEO compensation was reported as US$2.2m for the year to December 2020. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.
On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$1.5m. This suggests that John Buran is paid more than the median for the industry. Furthermore, John Buran directly owns US$3.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. Flushing Financial is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Flushing Financial Corporation's Growth Numbers
Flushing Financial Corporation's earnings per share (EPS) grew 9.9% per year over the last three years. In the last year, its revenue is up 37%.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Flushing Financial Corporation Been A Good Investment?
With a total shareholder return of 3.1% over three years, Flushing Financial Corporation has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Flushing Financial that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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.
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