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Is Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) Overpaying Its CEO?

In 1989 Assaf Ran was appointed CEO of Manhattan Bridge Capital, Inc. (NASDAQ:LOAN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Manhattan Bridge Capital

How Does Assaf Ran’s Compensation Compare With Similar Sized Companies?

According to our data, Manhattan Bridge Capital, Inc. has a market capitalization of US$61m, and pays its CEO total annual compensation worth US$377k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$290k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$415k.

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That means Assaf Ran receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Manhattan Bridge Capital, below.

NasdaqCM:LOAN CEO Compensation, March 7th 2019
NasdaqCM:LOAN CEO Compensation, March 7th 2019

Is Manhattan Bridge Capital, Inc. Growing?

On average over the last three years, Manhattan Bridge Capital, Inc. has grown earnings per share (EPS) by 13% each year (using a line of best fit). In the last year, its revenue is up 16%.

This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Manhattan Bridge Capital, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Manhattan Bridge Capital, Inc. for providing a total return of 87% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Assaf Ran is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Manhattan Bridge Capital (free visualization of insider trades).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.