A Quick Analysis On Peapack-Gladstone Financial's (NASDAQ:PGC) CEO Compensation
Doug Kennedy has been the CEO of Peapack-Gladstone Financial Corporation (NASDAQ:PGC) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Peapack-Gladstone Financial pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Peapack-Gladstone Financial
Comparing Peapack-Gladstone Financial Corporation's CEO Compensation With the industry
According to our data, Peapack-Gladstone Financial Corporation has a market capitalization of US$330m, and paid its CEO total annual compensation worth US$2.2m over the year to December 2019. That's a slight decrease of 5.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$695k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.2m. This suggests that Doug Kennedy is paid more than the median for the industry. What's more, Doug Kennedy holds US$2.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$695k | US$669k | 31% |
Other | US$1.5m | US$1.7m | 69% |
Total Compensation | US$2.2m | US$2.4m | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. In Peapack-Gladstone Financial's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Peapack-Gladstone Financial Corporation's Growth Numbers
Earnings per share at Peapack-Gladstone Financial Corporation are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is down 2.2%.
We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, 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?
With a three year total loss of 37% for the shareholders, Peapack-Gladstone Financial Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Doug is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Over the last three years, shareholder returns have been downright disappointing for Peapack-Gladstone Financial, and although earnings growth is steady, it hasn't set the world on fire. This doesn't look good when you see that Doug is earning more than the industry median. All things considered, we believe shareholders would be disappointed to see Doug's compensation grow without first seeing an improvement in the performance of the company.
Shareholders may want to check for free if Peapack-Gladstone Financial insiders are buying or selling shares.
Switching gears from Peapack-Gladstone Financial, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
