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Is Malvern Bancorp Inc (NASDAQ:MLVF) Excessively Paying Its CEO?

Tony Weagley became the CEO of Malvern Bancorp Inc (NASDAQ:MLVF) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Malvern Bancorp

How Does Tony Weagley’s Compensation Compare With Similar Sized Companies?

Our data indicates that Malvern Bancorp Inc is worth US$152m, and total annual CEO compensation is US$670k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$451k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$927k.

So Tony Weagley is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Malvern Bancorp has changed from year to year.

NasdaqGM:MLVF CEO Compensation November 27th 18

Is Malvern Bancorp Inc Growing?

Over the last three years Malvern Bancorp Inc has grown its earnings per share (EPS) by an average of 1.2% per year. It achieved revenue growth of 23% over the last year.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Malvern Bancorp Inc Been A Good Investment?

Malvern Bancorp Inc has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Remuneration for Tony Weagley is close enough to the median pay for a CEO of a similar sized company .

We think many would like to see better growth. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. So you may want to check if insiders are buying Malvern Bancorp shares with their own money (free access).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.