Marty Plourd became the CEO of Community West Bancshares (NASDAQ:CWBC) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
How Does Marty Plourd's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Community West Bancshares has a market cap of US$54m, and reported total annual CEO compensation of US$702k for the year to December 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$433k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$596k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that Community West Bancshares pays out a greater portion of remuneration through salary, in comparison to the wider industry.
So Marty Plourd 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 a visual representation of the CEO compensation at Community West Bancshares, below.
Is Community West Bancshares Growing?
Community West Bancshares has seen earnings per share (EPS) move positively by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is up 6.3% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Community West Bancshares Been A Good Investment?
Since shareholders would have lost about 32% over three years, some Community West Bancshares shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Marty Plourd is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Community West Bancshares that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.