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What Can We Learn About Parke Bancorp's (NASDAQ:PKBK) CEO Compensation?

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Simply Wall St
·3 min read
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This article will reflect on the compensation paid to Vito Pantilione who has served as CEO of Parke Bancorp, Inc. (NASDAQ:PKBK) since 2005. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Parke Bancorp.

View our latest analysis for Parke Bancorp

How Does Total Compensation For Vito Pantilione Compare With Other Companies In The Industry?

According to our data, Parke Bancorp, Inc. has a market capitalization of US$186m, and paid its CEO total annual compensation worth US$1.5m over the year to December 2019. We note that's an increase of 17% above last year. We note that the salary portion, which stands at US$812.3k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$811k. Accordingly, our analysis reveals that Parke Bancorp, Inc. pays Vito Pantilione north of the industry median. Furthermore, Vito Pantilione directly owns US$4.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$812k

US$739k

53%

Other

US$731k

US$584k

47%

Total Compensation

US$1.5m

US$1.3m

100%

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. Parke Bancorp pays out 53% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

Parke Bancorp, Inc.'s Growth

Parke Bancorp, Inc. has seen its earnings per share (EPS) increase by 17% a year over the past three years. It achieved revenue growth of 1.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Parke Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 0.6% over three years, some Parke Bancorp, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Parke 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. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Vito is underpaid, in fact compensation is definitely on the higher side.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Parke Bancorp that investors should think about before committing capital to this stock.

Switching gears from Parke Bancorp, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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@simplywallst.com.