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Should You Worry About Greene County Bancorp, Inc.'s (NASDAQ:GCBC) CEO Pay Cheque?

Simply Wall St

In 2007 Don Gibson was appointed CEO of Greene County Bancorp, Inc. (NASDAQ:GCBC). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Greene County Bancorp

How Does Don Gibson's Compensation Compare With Similar Sized Companies?

According to our data, Greene County Bancorp, Inc. has a market capitalization of US$226m, and paid its CEO total annual compensation worth US$1.3m over the year to June 2019. We note that's an increase of 16% above last year. While we always look at total compensation first, we note that the salary component is less, at US$488k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.

So Don Gibson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Greene County Bancorp has changed from year to year.

NasdaqCM:GCBC CEO Compensation, October 26th 2019

Is Greene County Bancorp, Inc. Growing?

Over the last three years Greene County Bancorp, Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Greene County Bancorp, Inc. Been A Good Investment?

Boasting a total shareholder return of 59% over three years, Greene County Bancorp, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Don Gibson is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Greene County Bancorp shares with their own money (free access).

If you want to buy a stock that is better than Greene County Bancorp, 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 editorial-team@simplywallst.com. 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.