Is Malvern Bancorp, Inc.'s (NASDAQ:MLVF) CEO Pay Justified?
Tony Weagley has been the CEO of Malvern Bancorp, Inc. (NASDAQ:MLVF) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Malvern Bancorp
How Does Tony Weagley's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Malvern Bancorp, Inc. has a market cap of US$169m, and reported total annual CEO compensation of US$709k for the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$480k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
A first glance this seems like a real positive for shareholders, since Tony Weagley is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Malvern Bancorp, below.
Is Malvern Bancorp, Inc. Growing?
Over the last three years Malvern Bancorp, Inc. has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). In the last year, its revenue is down 4.1%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Malvern Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 33%, over three years, would leave most Malvern Bancorp, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
It appears that Malvern Bancorp, Inc. remunerates its CEO below most similar sized companies.
Tony Weagley is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Malvern Bancorp (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
