Is Bryn Mawr Bank Corporation's (NASDAQ:BMTC) CEO Pay Fair?

Frank Leto became the CEO of Bryn Mawr Bank Corporation (NASDAQ:BMTC) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Bryn Mawr Bank

How Does Frank Leto's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Bryn Mawr Bank Corporation has a market cap of US$702m, and is paying total annual CEO compensation of US$1.7m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$603k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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 Bryn Mawr Bank has changed from year to year.

NasdaqGS:BMTC CEO Compensation, August 21st 2019
NasdaqGS:BMTC CEO Compensation, August 21st 2019

Is Bryn Mawr Bank Corporation Growing?

On average over the last three years, Bryn Mawr Bank Corporation has grown earnings per share (EPS) by 24% each year (using a line of best fit). Its revenue is up 10% over last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Bryn Mawr Bank Corporation Been A Good Investment?

Bryn Mawr Bank Corporation has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Bryn Mawr Bank Corporation is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Frank Leto is paid too much.

It's good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bryn Mawr Bank.

If you want to buy a stock that is better than Bryn Mawr Bank, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.

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