Is Peapack-Gladstone Financial Corporation’s (NASDAQ:PGC) CEO Salary Justified?
Doug Kennedy has been the CEO of Peapack-Gladstone Financial Corporation (NASDAQ:PGC) since 2012. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Peapack-Gladstone Financial
How Does Doug Kennedy’s Compensation Compare With Similar Sized Companies?
According to our data, Peapack-Gladstone Financial Corporation has a market capitalization of US$529m, and pays its CEO total annual compensation worth US$1.8m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$573k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.6m.
That means Doug Kennedy receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Peapack-Gladstone Financial has changed from year to year.
Is Peapack-Gladstone Financial Corporation Growing?
On average over the last three years, Peapack-Gladstone Financial Corporation has grown earnings per share (EPS) by 22% each year. Its revenue is up 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Peapack-Gladstone Financial Corporation Been A Good Investment?
Peapack-Gladstone Financial Corporation has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Doug Kennedy is paid around what is normal the leaders of comparable size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Peapack-Gladstone Financial.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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.
