Is Mid Penn Bancorp, Inc.'s (NASDAQ:MPB) CEO Paid Enough Relative To Peers?
Rory Ritrievi became the CEO of Mid Penn Bancorp, Inc. (NASDAQ:MPB) in 2009. 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.
Check out our latest analysis for Mid Penn Bancorp
How Does Rory Ritrievi's Compensation Compare With Similar Sized Companies?
According to our data, Mid Penn Bancorp, Inc. has a market capitalization of US$162m, and paid its CEO total annual compensation worth US$790k over the year to December 2019. We note that's an increase of 19% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$488k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.4m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. It's interesting to note that Mid Penn Bancorp pays out a greater portion of remuneration through salary, in comparison to the wider industry.
Most shareholders would consider it a positive that Rory Ritrievi 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. The graphic below shows how CEO compensation at Mid Penn Bancorp has changed from year to year.
Is Mid Penn Bancorp, Inc. Growing?
Mid Penn Bancorp, Inc. has seen earnings per share (EPS) move positively by an average of 4.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 19% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.
Has Mid Penn Bancorp, Inc. Been A Good Investment?
Given the total loss of 23% over three years, many shareholders in Mid Penn Bancorp, Inc. 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 Mid Penn Bancorp, Inc. pays its CEO less than similar sized companies.
It's well worth noting that while Rory Ritrievi is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Taking a breather from CEO compensation, we've spotted 4 warning signs for Mid Penn Bancorp (of which 1 doesn't sit too well with us!) you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.
