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Craig Montanaro became the CEO of Kearny Financial Corp. (NASDAQ:KRNY) in 2011. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Craig Montanaro's Compensation Compare With Similar Sized Companies?
Our data indicates that Kearny Financial Corp. is worth US$1.2b, and total annual CEO compensation is US$750k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$450k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
Most shareholders would consider it a positive that Craig Montanaro takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. 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 Kearny Financial, below.
Is Kearny Financial Corp. Growing?
Kearny Financial Corp. has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 44%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kearny Financial Corp. Been A Good Investment?
Kearny Financial Corp. has not done too badly by shareholders, with a total return of 9.8%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It looks like Kearny Financial Corp. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Craig Montanaro is overcompensated.
It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling Kearny Financial shares (free trial).
If you want to buy a stock that is better than Kearny Financial, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.