Is Prudential Bancorp Inc (NASDAQ:PBIP) Excessively Paying Its CEO?
Dennis Pollack became the CEO of Prudential Bancorp Inc (NASDAQ:PBIP) in 2016. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Prudential Bancorp
How Does Dennis Pollack’s Compensation Compare With Similar Sized Companies?
Our data indicates that Prudential Bancorp Inc is worth US$155m, and total annual CEO compensation is US$512k. Notably, that’s an increase of 34% over the year before. 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$927k.
A first glance this seems like a real positive for shareholders, since Dennis Pollack is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Prudential Bancorp, below.
Is Prudential Bancorp Inc Growing?
On average over the last three years, Prudential Bancorp Inc has grown earnings per share (EPS) by 34% each year. Its revenue is up 45% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Prudential Bancorp Inc Been A Good Investment?
Prudential Bancorp Inc has served shareholders reasonably well, with a total return of 28% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
It appears that Prudential Bancorp Inc remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn’t mean that Dennis Pollack is paid too much.
It’s great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares.
Or you might prefer examine intently this intuitive graph showing past earnings 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.
