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How Should Investors React To Glen Burnie Bancorp's (NASDAQ:GLBZ) CEO Pay?

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In 2016 John Long was appointed CEO of Glen Burnie Bancorp (NASDAQ:GLBZ). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Glen Burnie Bancorp

How Does John Long's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Glen Burnie Bancorp has a market cap of US$32m, and reported total annual CEO compensation of US$343k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$268k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$523k.

Most shareholders would consider it a positive that John Long takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Glen Burnie Bancorp, below.

NasdaqCM:GLBZ CEO Compensation, January 27th 2020
NasdaqCM:GLBZ CEO Compensation, January 27th 2020

Is Glen Burnie Bancorp Growing?

Over the last three years Glen Burnie Bancorp has grown its earnings per share (EPS) by an average of 8.1% per year (using a line of best fit). In the last year, its revenue is up 5.4%.

I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Glen Burnie Bancorp Been A Good Investment?

Glen Burnie Bancorp has generated a total shareholder return of 6.1% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Glen Burnie Bancorp is currently paying its CEO below what is normal for companies of its size.

John Long receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. Shareholders may want to check for free if Glen Burnie Bancorp insiders are buying or selling shares.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.