What Did Howard Bancorp's (NASDAQ:HBMD) CEO Take Home Last Year?

Mary Scully has been the CEO of Howard Bancorp, Inc. (NASDAQ:HBMD) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Howard Bancorp

How Does Total Compensation For Mary Scully Compare With Other Companies In The Industry?

According to our data, Howard Bancorp, Inc. has a market capitalization of US$221m, and paid its CEO total annual compensation worth US$780k over the year to December 2019. Notably, that's a decrease of 25% over the year before. Notably, the salary which is US$530.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$850k. So it looks like Howard Bancorp compensates Mary Scully in line with the median for the industry. Furthermore, Mary Scully directly owns US$1.7m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Howard Bancorp is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Howard Bancorp, Inc.'s Growth Numbers

Howard Bancorp, Inc. has reduced its earnings per share by 32% a year over the last three years. In the last year, its revenue is down 6.6%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Howard Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 41% over three years, some Howard Bancorp, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Howard Bancorp pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Howard Bancorp that investors should think about before committing capital to this 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.

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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