Yahoo Finance It's Unlikely That Peapack-Gladstone Financial Corporation's (NASDAQ:PGC) CEO Will See A Huge Pay Rise This Year
Key Insights
Peapack-Gladstone Financial's Annual General Meeting to take place on 30th of April
CEO Doug Kennedy's total compensation includes salary of US$823.0k
The overall pay is 110% above the industry average
Peapack-Gladstone Financial's EPS grew by 26% over the past three years while total shareholder loss over the past three years was 18%
In the past three years, the share price of Peapack-Gladstone Financial Corporation (NASDAQ:PGC) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30th of April. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Peapack-Gladstone Financial
How Does Total Compensation For Doug Kennedy Compare With Other Companies In The Industry?
At the time of writing, our data shows that Peapack-Gladstone Financial Corporation has a market capitalization of US$438m, and reported total annual CEO compensation of US$3.0m for the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$823k.
For comparison, other companies in the American Banks industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.4m. This suggests that Doug Kennedy is paid more than the median for the industry. Furthermore, Doug Kennedy directly owns US$2.4m worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$823k | US$731k | 27% |
Other | US$2.2m | US$2.3m | 73% |
Total Compensation | US$3.0m | US$3.1m | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. In Peapack-Gladstone Financial's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Peapack-Gladstone Financial Corporation's Growth Numbers
Peapack-Gladstone Financial Corporation has seen its earnings per share (EPS) increase by 26% a year over the past three years. In the last year, its revenue is down 8.7%.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Peapack-Gladstone Financial Corporation Been A Good Investment?
With a three year total loss of 18% for the shareholders, Peapack-Gladstone Financial Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Peapack-Gladstone Financial that investors should look into moving forward.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
