Chris Maher has been the CEO of OceanFirst Financial Corp. (NASDAQ:OCFC) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Chris Maher's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that OceanFirst Financial Corp. has a market cap of US$1.2b, and reported total annual CEO compensation of US$2.9m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$846k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$3.9m.
So Chris Maher receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at OceanFirst Financial has changed over time.
Is OceanFirst Financial Corp. Growing?
On average over the last three years, OceanFirst Financial Corp. has grown earnings per share (EPS) by 20% each year (using a line of best fit). Its revenue is up 17% over 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. It could be important to check this free visual depiction of what analysts expect for the future.
Has OceanFirst Financial Corp. Been A Good Investment?
Since shareholders would have lost about 6.8% over three years, some OceanFirst Financial Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Chris Maher is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. So you may want to check if insiders are buying OceanFirst Financial shares with their own money (free access).
Important note: OceanFirst Financial may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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