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This article will reflect on the compensation paid to David Pijor who has served as CEO of FVCBankcorp, Inc. (NASDAQ:FVCB) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing FVCBankcorp, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that FVCBankcorp, Inc. has a market capitalization of US$145m, and reported total annual CEO compensation of US$1.7m for the year to December 2019. Notably, that's an increase of 34% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$640k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$631k. This suggests that David Pijor is paid more than the median for the industry. Furthermore, David Pijor directly owns US$2.3m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that FVCBankcorp allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at FVCBankcorp, Inc.'s Growth Numbers
FVCBankcorp, Inc.'s earnings per share (EPS) grew 11% per year over the last three years. It achieved revenue growth of 4.9% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has FVCBankcorp, Inc. Been A Good Investment?
Since shareholders would have lost about 36% over three years, some FVCBankcorp, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
As previously discussed, David is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FVCBankcorp.
Important note: FVCBankcorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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