Ken Mahon has been the CEO of Dime Community Bancshares, Inc. (NASDAQ:DCOM) since 2017. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ken Mahon's Compensation Compare With Similar Sized Companies?
Our data indicates that Dime Community Bancshares, Inc. is worth US$679m, and total annual CEO compensation is US$1.9m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$825k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
So Ken Mahon receives a similar amount to the median CEO pay, amongst 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 Dime Community Bancshares has changed from year to year.
Is Dime Community Bancshares, Inc. Growing?
On average over the last three years, Dime Community Bancshares, Inc. has shrunk earnings per share by 19% each year (measured with a line of best fit). In the last year, its revenue is down -15%.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Dime Community Bancshares, Inc. Been A Good Investment?
Dime Community Bancshares, Inc. has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Ken Mahon is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing earnings per share, and nor have the total returns inspired us. We're not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Dime Community Bancshares.
If you want to buy a stock that is better than Dime Community Bancshares, this free list of high return, low debt companies is a great place to look.
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.