It's Unlikely That Shareholders Will Increase BCB Bancorp, Inc.'s (NASDAQ:BCBP) Compensation By Much This Year
Performance at BCB Bancorp, Inc. (NASDAQ:BCBP) has been reasonably good and CEO Tom Coughlin has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29 April 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
See our latest analysis for BCB Bancorp
Comparing BCB Bancorp, Inc.'s CEO Compensation With the industry
Our data indicates that BCB Bancorp, Inc. has a market capitalization of US$237m, and total annual CEO compensation was reported as US$931k for the year to December 2020. We note that's a decrease of 31% compared to last year. Notably, the salary which is US$585.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$777k. From this we gather that Tom Coughlin is paid around the median for CEOs in the industry. Furthermore, Tom Coughlin directly owns US$3.7m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$585k | US$585k | 63% |
Other | US$346k | US$756k | 37% |
Total Compensation | US$931k | US$1.3m | 100% |
On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that BCB Bancorp pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at BCB Bancorp, Inc.'s Growth Numbers
BCB Bancorp, Inc. has seen its earnings per share (EPS) increase by 20% a year over the past three years. Its revenue is up 8.4% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 BCB Bancorp, Inc. Been A Good Investment?
With a total shareholder return of 2.2% over three years, BCB Bancorp, Inc. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for BCB Bancorp that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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.
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