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Should You Worry About Northfield Bancorp, Inc. (Staten Island, NY)'s (NASDAQ:NFBK) CEO Pay Cheque?

Steve Klein became the CEO of Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Northfield Bancorp (Staten Island NY)

How Does Steve Klein's Compensation Compare With Similar Sized Companies?

According to our data, Northfield Bancorp, Inc. (Staten Island, NY) has a market capitalization of US$526m, and paid its CEO total annual compensation worth US$977k over the year to December 2019. That's a modest increase of 3.5% on the prior year year. While we always look at total compensation first, we note that the salary component is less, at US$595k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$2.3m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. Northfield Bancorp (Staten Island NY) does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

Most shareholders would consider it a positive that Steve Klein takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at Northfield Bancorp (Staten Island NY) has changed from year to year.

NasdaqGS:NFBK CEO Compensation May 22nd 2020
NasdaqGS:NFBK CEO Compensation May 22nd 2020

Is Northfield Bancorp, Inc. (Staten Island, NY) Growing?

Northfield Bancorp, Inc. (Staten Island, NY) has seen earnings per share (EPS) move positively by an average of 7.9% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.

Has Northfield Bancorp, Inc. (Staten Island, NY) Been A Good Investment?

Given the total loss of 30% over three years, many shareholders in Northfield Bancorp, Inc. (Staten Island, NY) are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like Northfield Bancorp, Inc. (Staten Island, NY) pays its CEO less than similar sized companies.

Steve Klein receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Moving away from CEO compensation for the moment, we've identified 3 warning signs for Northfield Bancorp (Staten Island NY) that you should be aware of before investing.

If you want to buy a stock that is better than Northfield Bancorp (Staten Island NY), this free list of high return, low debt companies is a great place to look.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.

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