The CEO of 1st Constitution Bancorp (NASDAQ:FCCY) is Robert Mangano. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Robert Mangano's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that 1st Constitution Bancorp has a market cap of US$163m, and is paying total annual CEO compensation of US$1.5m. (This is based on the year to December 2018). That's a fairly small increase of 3.6% on year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$660k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
As you can see, Robert Mangano is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean 1st Constitution Bancorp is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at 1st Constitution Bancorp has changed over time.
Is 1st Constitution Bancorp Growing?
Over the last three years 1st Constitution Bancorp has grown its earnings per share (EPS) by an average of 6.1% per year (using a line of best fit). It achieved revenue growth of 16% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has 1st Constitution Bancorp Been A Good Investment?
Most shareholders would probably be pleased with 1st Constitution Bancorp for providing a total return of 53% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at 1st Constitution Bancorp with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling 1st Constitution Bancorp (free visualization of insider trades).
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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.