Yahoo Finance It's Unlikely That The CEO Of Mid Penn Bancorp, Inc. (NASDAQ:MPB) Will See A Huge Pay Rise This Year
In the past three years, the share price of Mid Penn Bancorp, Inc. (NASDAQ:MPB) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 11 May 2021. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Mid Penn Bancorp
How Does Total Compensation For Rory Ritrievi Compare With Other Companies In The Industry?
At the time of writing, our data shows that Mid Penn Bancorp, Inc. has a market capitalization of US$301m, and reported total annual CEO compensation of US$1.1m for the year to December 2020. We note that's an increase of 42% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$500k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.1m. This suggests that Mid Penn Bancorp remunerates its CEO largely in line with the industry average. Furthermore, Rory Ritrievi directly owns US$1.0m worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$500k | US$488k | 44% |
Other | US$626k | US$302k | 56% |
Total Compensation | US$1.1m | US$790k | 100% |
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Although there is a difference in how total compensation is set, Mid Penn Bancorp more or less reflects the market in terms of setting the salary. 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 Mid Penn Bancorp, Inc.'s Growth Numbers
Mid Penn Bancorp, Inc. has seen its earnings per share (EPS) increase by 42% a year over the past three years. It achieved revenue growth of 35% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Mid Penn Bancorp, Inc. Been A Good Investment?
Given the total shareholder loss of 17% over three years, many shareholders in Mid Penn Bancorp, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Mid Penn Bancorp we think you should know about.
Important note: Mid Penn Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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