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Should You Be Pleased About The CEO Pay At Bancorp Of New Jersey, Inc.’s (NYSEMKT:BKJ)

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Nancy Graves has been the CEO of Bancorp Of New Jersey, Inc. (NYSEMKT:BKJ) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Bancorp Of New Jersey

How Does Nancy Graves’s Compensation Compare With Similar Sized Companies?

According to our data, Bancorp Of New Jersey, Inc. has a market capitalization of US$97m, and pays its CEO total annual compensation worth US$1.0m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$432k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$425k.

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Thus we can conclude that Nancy Graves receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bancorp Of New Jersey, Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Bancorp Of New Jersey has changed over time.

AMEX:BKJ CEO Compensation, March 26th 2019
AMEX:BKJ CEO Compensation, March 26th 2019

Is Bancorp Of New Jersey, Inc. Growing?

Over the last three years Bancorp Of New Jersey, Inc. has shrunk its earnings per share by an average of 3.6% per year (measured with a line of best fit). Its revenue is up 4.0% over last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Bancorp Of New Jersey, Inc. Been A Good Investment?

With a total shareholder return of 26% over three years, Bancorp Of New Jersey, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared total CEO remuneration at Bancorp Of New Jersey, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Earnings per share have not grown in three years, and the revenue growth fails to impress us.

While shareholder returns are acceptable, they don’t delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! So you may want to check if insiders are buying Bancorp Of New Jersey shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.