How Should Investors Feel About Bridge Bancorp's (NASDAQ:BDGE) CEO Remuneration?

Simply Wall St
4 min read
0

Kevin O'Connor has been the CEO of Bridge Bancorp, Inc. (NASDAQ:BDGE) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Bridge Bancorp pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Bridge Bancorp

Comparing Bridge Bancorp, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Bridge Bancorp, Inc. has a market capitalization of US$477m, and reported total annual CEO compensation of US$2.4m for the year to December 2019. We note that's an increase of 63% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$700k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.1m. Hence, we can conclude that Kevin O'Connor is remunerated higher than the industry median. Moreover, Kevin O'Connor also holds US$3.4m worth of Bridge Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$700k

US$625k

29%

Other

US$1.7m

US$835k

71%

Total Compensation

US$2.4m

US$1.5m

100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Bridge Bancorp pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Bridge Bancorp, Inc.'s Growth Numbers

Bridge Bancorp, Inc.'s earnings per share (EPS) grew 7.8% per year over the last three years. Its revenue is up 4.6% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Bridge Bancorp, Inc. Been A Good Investment?

With a three year total loss of 22% for the shareholders, Bridge Bancorp, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Bridge Bancorp, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The growth in the business has been uninspiring, but the shareholder returns for Bridge Bancorp have arguably been worse, over the last three years. And the situation doesn't look all that good when you see Kevin is remunerated higher than the industry average. Taking all this into account, it could be hard to get shareholder support for giving Kevin a raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Bridge Bancorp that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Advertisement

Recommended Stories

  • Mortgage rates top 7% for the first time this year, Freddie Mac says

    U.S. mortgage rates increased by the most since June and also crossed the 7% threshold for the first time since December, muddling home sales growth, a Thursday report said. The average rate on a 30-year fixed-rate mortgage rose to 7.10% for the week ended April 18 from 6.88% the week prior, Freddie Mac reported. “As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year," said Sam Khater, Freddie Mac's chief economist.

  • Meta releases early versions of its Llama 3 AI model

    NEW YORK (Reuters) -Meta Platforms on Thursday released early versions of its latest large language model, Llama 3, and an image generator that updates pictures in real time while users type prompts, as it races to catch up to generative AI market leader OpenAI. The models will be integrated into its virtual assistant Meta AI, which the company is pitching as the most sophisticated of its free-to-use peers, citing performance comparisons on subjects like reasoning, coding and creative writing against offerings from rivals including Alphabet's Google and French startup Mistral AI. The updated Meta AI assistant will be given more prominent billing within Meta's Facebook, Instagram, WhatsApp and Messenger apps as well as a new standalone website that positions it to compete more directly with Microsoft-backed OpenAI's breakout hit, ChatGPT.

  • BofA Strategists Say Rates Jitters Are Fueling Stock Outflows

    (Bloomberg) -- Investors are pulling money out of equities as a strong US economy and sticky inflation fuel concerns that the Federal Reserve will keep interest rates higher for longer, according to Bank of America Corp. strategists.Most Read from BloombergElon Wants His Money BackDubai Grinds to Standstill as Flooding Hits CityNew York’s Rich Get Creative to Flee State Taxes. Auditors Are On to ThemIsrael Reported to Have Launched Retaliatory Strike on IranRecord Rainfall in Dubai? Blame Climat

  • Microsoft has 17% upside potential and upcoming earnings will show strong AI-driven growth, Bank of America says

    Bank of America raised Microsoft's earnings estimate by 1% above its $60.5 billion Q3 revenue forecast, citing sustained Azure strength.

  • Fed Says Persistent Inflation Is Seen as Top Financial Risk

    (Bloomberg) -- Higher-than-expected interest rates amid persistent inflation are perceived as the biggest threat to financial stability among market participants and observers, according to the Federal Reserve.Most Read from BloombergElon Wants His Money BackNew York’s Rich Get Creative to Flee State Taxes. Auditors Are On to Them‘Mag Seven’ Get Crushed Before Next Week’s Results: Markets WrapDubai Grinds to Standstill as Flooding Hits CityIsrael Reported to Have Launched Retaliatory Strike on I

  • The Headache at the End of the Costco Gold Rush

    Costco made buying a gold bar as simple as tossing it in a shopping cart. Adam Xi, 33 years old, called five different dealers to get a price he could accept for the gold bar he bought at Costco in October. Costco shoppers are spending as much as $200 million monthly on gold, according to a Wells Fargo estimate.

  • Why Nvidia Stock Plunged 10% Today

    Super Micro Computer's lack of a preliminary earnings report led to a bloodbath in the sector.

  • California loses 2 more property insurers in growing crisis

    Two more property insurance companies are pulling out of California, leaving more homeowners in the state facing loss of coverage and surging premiums as insurers flee.

  • Don't buy the dip in stocks just yet as a wave of selling is about to bring the market to a bottom, according to one of the biggest bulls on Wall Street

    The S&P 500 could bottom out in the next month, according to Fundstrat's head of research Tom Lee.

  • Here is What to Know Beyond Why Pfizer Inc. (PFE) is a Trending Stock

    Recently, Zacks.com users have been paying close attention to Pfizer (PFE). This makes it worthwhile to examine what the stock has in store.