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Is Two River Bancorp’s (NASDAQ:TRCB) CEO Being Overpaid?

Wade Goff

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Bill Moss became the CEO of Two River Bancorp (NASDAQ:TRCB) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Two River Bancorp

How Does Bill Moss’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Two River Bancorp has a market cap of US$138m, and is paying total annual CEO compensation of US$671k. (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$343k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.

As you can see, Bill Moss is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Two River Bancorp 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 a visual representation of the CEO compensation at Two River Bancorp, below.

NASDAQGM:TRCB CEO Compensation February 1st 19

Is Two River Bancorp Growing?

Two River Bancorp has increased its earnings per share (EPS) by an average of 9.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 12%.

I think the revenue growth is good. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Two River Bancorp Been A Good Investment?

Most shareholders would probably be pleased with Two River Bancorp for providing a total return of 84% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

We compared the total CEO remuneration paid by Two River Bancorp, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Two River Bancorp insiders are buying or selling shares.

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.