Jim Ford became the CEO of Central Valley Community Bancorp (NASDAQ:CVCY) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
How Does Jim Ford’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Central Valley Community Bancorp has a market cap of US$275m, and is paying total annual CEO compensation of US$635k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$327k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$931k.
A first glance this seems like a real positive for shareholders, since Jim Ford is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Central Valley Community Bancorp, below.
Is Central Valley Community Bancorp Growing?
Central Valley Community Bancorp has increased its earnings per share (EPS) by an average of 3.2% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.3% over the last year.
I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Central Valley Community Bancorp Been A Good Investment?
I think that the total shareholder return of 80%, over three years, would leave most Central Valley Community Bancorp shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Central Valley Community Bancorp remunerates its CEO below most similar sized companies.
Jim Ford receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Central Valley Community Bancorp (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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