Barry Sloane became the CEO of Century Bancorp, Inc. (NASDAQ:CNBK.A) in 2006. 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.
How Does Barry Sloane's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Century Bancorp, Inc. has a market cap of US$483m, and reported total annual CEO compensation of US$1.0m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$685k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Century Bancorp, below.
Is Century Bancorp, Inc. Growing?
Over the last three years Century Bancorp, Inc. has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). In the last year, its revenue is up 4.9%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Century Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 94%, over three years, would leave most Century Bancorp, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Century Bancorp, Inc. remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Barry Sloane deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Century Bancorp (free visualization of insider trades).
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.
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