Travis Thompson has been the CEO of HV Bancorp, Inc. (NASDAQ:HVBC) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Travis Thompson's Compensation Compare With Similar Sized Companies?
According to our data, HV Bancorp, Inc. has a market capitalization of US$36m, and paid its CEO total annual compensation worth US$280k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$200k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$523k.
Most shareholders would consider it a positive that Travis Thompson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at HV Bancorp has changed over time.
Is HV Bancorp, Inc. Growing?
HV Bancorp, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. Its revenue is up 23% over last year.
In the last three years the company has failed to grow earnings per share. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has HV Bancorp, Inc. Been A Good Investment?
HV Bancorp, Inc. has served shareholders reasonably well, with a total return of 29% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
HV Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size.
Shareholders should note that compensation for Travis Thompson is under the median of a group of similar sized companies. But the company lacks earnings per share growth, and returns to shareholders are less than stellar. There is room for improved company performance, but we don't see the CEO pay as a big issue here. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at HV Bancorp.
Important note: HV Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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