Michael Pugh has been the CEO of Carver Bancorp, Inc. (NASDAQ:CARV) since 2015. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Michael Pugh's Compensation Compare With Similar Sized Companies?
Our data indicates that Carver Bancorp, Inc. is worth US$12m, and total annual CEO compensation is US$384k. (This is based on the year to March 2019). That's a fairly small increase of 1.2% on year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$378k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$495k.
So Michael Pugh receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Carver Bancorp, below.
Is Carver Bancorp, Inc. Growing?
On average over the last three years, Carver Bancorp, Inc. has shrunk earnings per share by 5.8% each year (measured with a line of best fit). Its revenue is down -35% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Carver Bancorp, Inc. Been A Good Investment?
Given the total loss of 34% over three years, many shareholders in Carver Bancorp, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Michael Pugh is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Carver Bancorp shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.