How Should Investors Feel About Flushing Financial Corporation’s (NASDAQ:FFIC) CEO Pay?
John Buran has been the CEO of Flushing Financial Corporation (NASDAQ:FFIC) since 2005. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Flushing Financial
How Does John Buran’s Compensation Compare With Similar Sized Companies?
According to our data, Flushing Financial Corporation has a market capitalization of US$624m, and pays its CEO total annual compensation worth US$2m. That’s a fairly small increase of 2.9% on year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2m.
That means John Buran 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 Flushing Financial has changed over time.
Is Flushing Financial Corporation Growing?
Over the last three years Flushing Financial Corporation has shrunk its earnings per share by an average of 5.8% per year. In the last year, its revenue is up 23%.
Sadly for shareholders, earnings per share are actually down, over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Flushing Financial Corporation Been A Good Investment?
Flushing Financial Corporation has not done too badly by shareholders, with a total return of 7.7%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
John Buran is paid around the same as most CEOs of similar size companies.
The company isn’t growing earnings per share, and nor have the total returns inspired us. We’re not saying the CEO pay is too generous, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Flushing Financial Corporation.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
