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In 2001 Harry Madonna was appointed CEO of Republic First Bancorp, Inc. (NASDAQ:FRBK). 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 Harry Madonna’s Compensation Compare With Similar Sized Companies?
According to our data, Republic First Bancorp, Inc. has a market capitalization of US$385m, and pays its CEO total annual compensation worth US$907k. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$415k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.5m.
Most shareholders would consider it a positive that Harry Madonna takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Republic First Bancorp has changed from year to year.
Is Republic First Bancorp, Inc. Growing?
On average over the last three years, Republic First Bancorp, Inc. has grown earnings per share (EPS) by 24% each year (using a line of best fit). Its revenue is up 16% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Republic First Bancorp, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Republic First Bancorp, Inc. for providing a total return of 68% over three years. 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.
It looks like Republic First Bancorp, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Harry Madonna deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Republic First Bancorp (free visualization of insider trades).
Important note: Republic First 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.
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 email@example.com.