Yahoo Finance Why We Think Manhattan Bridge Capital, Inc.'s (NASDAQ:LOAN) CEO Compensation Is Not Excessive At All
Key Insights
Manhattan Bridge Capital to hold its Annual General Meeting on 20th of June
Salary of US$350.0k is part of CEO Assaf Ran's total remuneration
The overall pay is 53% below the industry average
Manhattan Bridge Capital's three-year loss to shareholders was 5.1% while its EPS grew by 3.5% over the past three years
Performance at Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) has been rather uninspiring recently and shareholders may be wondering how CEO Assaf Ran plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 20th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.
See our latest analysis for Manhattan Bridge Capital
How Does Total Compensation For Assaf Ran Compare With Other Companies In The Industry?
According to our data, Manhattan Bridge Capital, Inc. has a market capitalization of US$58m, and paid its CEO total annual compensation worth US$529k over the year to December 2023. That's a notable increase of 41% on last year. In particular, the salary of US$350.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the American Mortgage REITs industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.1m. This suggests that Assaf Ran is paid below the industry median. Furthermore, Assaf Ran directly owns US$13m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$350k | US$329k | 66% |
Other | US$179k | US$46k | 34% |
Total Compensation | US$529k | US$375k | 100% |
Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Manhattan Bridge Capital pays out 66% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Manhattan Bridge Capital, Inc.'s Growth Numbers
Manhattan Bridge Capital, Inc.'s earnings per share (EPS) grew 3.5% per year over the last three years. Its revenue is up 10% over the last year.
We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Manhattan Bridge Capital, Inc. Been A Good Investment?
With a three year total loss of 5.1% for the shareholders, Manhattan Bridge Capital, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The lack lustre share price performance may have something to do with the flat earnings growth. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Manhattan Bridge Capital (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Manhattan Bridge Capital, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
