Rick Wayne became the CEO of Northeast Bank (NASDAQ:NBN) in 2010, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Northeast Bank.
See our latest analysis for Northeast Bank
How Does Total Compensation For Rick Wayne Compare With Other Companies In The Industry?
According to our data, Northeast Bank has a market capitalization of US$174m, and paid its CEO total annual compensation worth US$1.4m over the year to June 2020. That's a notable decrease of 22% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$845k. Accordingly, our analysis reveals that Northeast Bank pays Rick Wayne north of the industry median. What's more, Rick Wayne holds US$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. There isn't a significant difference between Northeast Bank and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Northeast Bank's Growth
Over the past three years, Northeast Bank has seen its earnings per share (EPS) grow by 20% per year. Its revenue is up 13% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Northeast Bank Been A Good Investment?
Given the total shareholder loss of 11% over three years, many shareholders in Northeast Bank are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Rick is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Rick is earning a very handsome sum.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Northeast Bank that investors should think about before committing capital to this stock.
Switching gears from Northeast Bank, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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