Canada Markets close in 4 hrs 37 mins

We Take A Look At Why Greene County Bancorp, Inc.'s (NASDAQ:GCBC) CEO Compensation Is Well Earned

We have been pretty impressed with the performance at Greene County Bancorp, Inc. (NASDAQ:GCBC) recently and CEO Don Gibson deserves a mention for their role in it. Coming up to the next AGM on 05 November 2022, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Greene County Bancorp

How Does Total Compensation For Don Gibson Compare With Other Companies In The Industry?

According to our data, Greene County Bancorp, Inc. has a market capitalization of US$579m, and paid its CEO total annual compensation worth US$1.8m over the year to June 2022. We note that's an increase of 9.8% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$558k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.5m. From this we gather that Don Gibson is paid around the median for CEOs in the industry. What's more, Don Gibson holds US$5.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2022

2021

Proportion (2022)

Salary

US$558k

US$531k

31%

Other

US$1.2m

US$1.1m

69%

Total Compensation

US$1.8m

US$1.6m

100%

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Greene County Bancorp sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at Greene County Bancorp, Inc.'s Growth Numbers

Over the past three years, Greene County Bancorp, Inc. has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 12% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Greene County Bancorp, Inc. Been A Good Investment?

We think that the total shareholder return of 156%, over three years, would leave most Greene County Bancorp, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

Shareholders may want to check for free if Greene County Bancorp insiders are buying or selling shares.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here