Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Dave Mansfield has been the CEO of Provident Bancorp, Inc. (NASDAQ:PVBC) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Dave Mansfield's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Provident Bancorp, Inc. has a market cap of US$216m, and is paying total annual CEO compensation of US$757k. (This number is for the twelve months until December 2018). That's a modest increase of 6.4% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at US$480k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.
So Dave Mansfield 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 Provident Bancorp has changed from year to year.
Is Provident Bancorp, Inc. Growing?
On average over the last three years, Provident Bancorp, Inc. has grown earnings per share (EPS) by 23% each year (using a line of best fit). Its revenue is down -3.1% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Provident Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Provident Bancorp, Inc. for providing a total return of 67% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Dave Mansfield is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Provident Bancorp insiders are buying or selling shares.
Important note: Provident Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 email@example.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.