Yahoo Finance Why Bank of Marin Bancorp's (NASDAQ:BMRC) CEO Pay Matters To You
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Russ Colombo has been the CEO of Bank of Marin Bancorp (NASDAQ:BMRC) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Bank of Marin Bancorp
How Does Russ Colombo's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bank of Marin Bancorp has a market cap of US$575m, and is paying total annual CEO compensation of US$1.2m. (This figure is for the year to December 2018). That's a modest increase of 4.9% on the prior year year. While we always look at total compensation first, we note that the salary component is less, at US$464k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
That means Russ Colombo receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Bank of Marin Bancorp has changed over time.
Is Bank of Marin Bancorp Growing?
Over the last three years Bank of Marin Bancorp has grown its earnings per share (EPS) by an average of 6.7% per year (using a line of best fit). In the last year, its revenue is up 19%.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bank of Marin Bancorp Been A Good Investment?
Most shareholders would probably be pleased with Bank of Marin Bancorp for providing a total return of 82% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Russ Colombo is paid around what is normal the leaders of comparable size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if Bank of Marin Bancorp insiders are buying or selling shares.
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.
