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Is Peapack-Gladstone Financial Corporation's (NASDAQ:PGC) CEO Paid At A Competitive Rate?

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Simply Wall St
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Doug Kennedy became the CEO of Peapack-Gladstone Financial Corporation (NASDAQ:PGC) in 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 - 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.

See our latest analysis for Peapack-Gladstone Financial

How Does Doug Kennedy's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Peapack-Gladstone Financial Corporation has a market cap of US$532m, and is paying total annual CEO compensation of US$2.4m. (This is based on the year to December 2018). We note that's an increase of 31% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$669k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.

As you can see, Doug Kennedy is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Peapack-Gladstone Financial Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Peapack-Gladstone Financial has changed over time.

NasdaqGS:PGC CEO Compensation, June 10th 2019
NasdaqGS:PGC CEO Compensation, June 10th 2019

Is Peapack-Gladstone Financial Corporation Growing?

On average over the last three years, Peapack-Gladstone Financial Corporation has grown earnings per share (EPS) by 20% each year (using a line of best fit). In the last year, its revenue is up 7.4%.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Peapack-Gladstone Financial Corporation Been A Good Investment?

Boasting a total shareholder return of 51% over three years, Peapack-Gladstone Financial Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount Peapack-Gladstone Financial Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be 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.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.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.