Rick Wayne has been the CEO of Northeast Bancorp (NASDAQ:NBN) since 2010. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Rick Wayne’s Compensation Compare With Similar Sized Companies?
According to our data, Northeast Bancorp has a market capitalization of US$171m, and pays its CEO total annual compensation worth US$1.0m. (This is based on the year to 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at US$600k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$941k.
So Rick Wayne 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 Northeast Bancorp has changed from year to year.
Is Northeast Bancorp Growing?
Over the last three years Northeast Bancorp has grown its earnings per share (EPS) by an average of 36% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
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 Northeast Bancorp Been A Good Investment?
I think that the total shareholder return of 84%, over three years, would leave most Northeast Bancorp shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Rick Wayne is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Northeast Bancorp (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.