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Is Republic First Bancorp, Inc. (NASDAQ:FRBK) Overpaying Its CEO?

Simply Wall St

Harry Madonna has been the CEO of Republic First Bancorp, Inc. (NASDAQ:FRBK) since 2001. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Republic First Bancorp

How Does Harry Madonna's Compensation Compare With Similar Sized Companies?

Our data indicates that Republic First Bancorp, Inc. is worth US$234m, and total annual CEO compensation was reported as US$863k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$415k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.

That means Harry Madonna receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Republic First Bancorp has changed over time.

NasdaqGM:FRBK CEO Compensation, December 10th 2019

Is Republic First Bancorp, Inc. Growing?

Over the last three years Republic First Bancorp, Inc. has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). Its revenue is up 9.7% over last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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?

With a three year total loss of 50%, Republic First Bancorp, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Harry Madonna is close enough to the median pay for a CEO of a similar sized company .

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! Shareholders may want to check for free if Republic First Bancorp insiders are buying or selling shares.

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.

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.

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. Thank you for reading.