Joe DePaolo has been the CEO of Signature Bank (NASDAQ:SBNY) since 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Joe DePaolo's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Signature Bank has a market cap of US$6.4b, and is paying total annual CEO compensation of US$8.7m. (This figure is for the year to December 2018). Notably, that's an increase of 14% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$900k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
So Joe DePaolo is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Signature Bank has changed from year to year.
Is Signature Bank Growing?
Signature Bank has increased its earnings per share (EPS) by an average of 8.7% a year, over the last three years (using a line of best fit). Its revenue is up 43% over last year.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. I wouldn't say this is necessarily top notch growth, but it is certainly promising. It could be important to check this free visual depiction of what analysts expect for the future.
Has Signature Bank Been A Good Investment?
Given the total loss of 9.7% over three years, many shareholders in Signature Bank are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Joe DePaolo is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. This contrasts with the growth in CEO remuneration. So it would take a bold person to suggest the pay is too modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Signature Bank.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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