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How Much Is Malvern Bancorp, Inc. (NASDAQ:MLVF) CEO Getting Paid?

Tony Weagley became the CEO of Malvern Bancorp, Inc. (NASDAQ:MLVF) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Malvern Bancorp.

View our latest analysis for Malvern Bancorp

Comparing Malvern Bancorp, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Malvern Bancorp, Inc. has a market capitalization of US$91m, and reported total annual CEO compensation of US$738k for the year to September 2019. That's a fairly small increase of 4.0% over the previous year. Notably, the salary which is US$512.1k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$650k. So it looks like Malvern Bancorp compensates Tony Weagley in line with the median for the industry. Furthermore, Tony Weagley directly owns US$897k worth of shares in the company.

Component

2019

2018

Proportion (2019)

Salary

US$512k

US$480k

69%

Other

US$226k

US$230k

31%

Total Compensation

US$738k

US$709k

100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Malvern Bancorp is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

Malvern Bancorp, Inc.'s Growth

Malvern Bancorp, Inc. has reduced its earnings per share by 17% a year over the last three years. It achieved revenue growth of 5.0% over the last year.

The decline in earnings is a bit concerning. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, 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?

Given the total shareholder loss of 53% over three years, many shareholders in Malvern Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Tony is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, earnings growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Malvern Bancorp that you should be aware of before investing.

Switching gears from Malvern 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.

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