A Look At HV Bancorp's (NASDAQ:HVBC) CEO Remuneration
This article will reflect on the compensation paid to Travis Thompson who has served as CEO of HV Bancorp, Inc. (NASDAQ:HVBC) since 2013. This analysis will also assess whether HV Bancorp pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for HV Bancorp
How Does Total Compensation For Travis Thompson Compare With Other Companies In The Industry?
According to our data, HV Bancorp, Inc. has a market capitalization of US$30m, and paid its CEO total annual compensation worth US$255k over the year to December 2019. That's a notable decrease of 62% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$100k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$526k. In other words, HV Bancorp pays its CEO lower than the industry median. Moreover, Travis Thompson also holds US$670k worth of HV Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$100k | US$200k | 39% |
Other | US$155k | US$464k | 61% |
Total Compensation | US$255k | US$664k | 100% |
On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. In HV Bancorp's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
HV Bancorp, Inc.'s Growth
HV Bancorp, Inc.'s earnings per share (EPS) grew 25% per year over the last three years. It achieved revenue growth of 61% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has HV Bancorp, Inc. Been A Good Investment?
With a three year total loss of 5.9% for the shareholders, HV Bancorp, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As previously discussed, Travis is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However we must not forget that the EPS growth has been very strong over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for HV Bancorp that investors should think about before committing capital to this stock.
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.
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.
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