CEO John Buran has done a decent job of delivering relatively good performance at Flushing Financial Corporation (NASDAQ:FFIC) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Flushing Financial
Comparing Flushing Financial Corporation’s CEO Compensation With the industry
Our data indicates that Flushing Financial Corporation has a market capitalization of US$729m, and total annual CEO compensation was reported as US$2.2m for the year to December 2020. This means that the compensation hasn’t changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.
In comparison with other companies in the industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$1.5m. Accordingly, our analysis reveals that Flushing Financial Corporation pays John Buran north of the industry median. Furthermore, John Buran directly owns US$3.3m worth of shares in the company, implying that they are deeply invested in the company’s success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$1.1m | US$1.1m | 49% |
| Other | US$1.1m | US$1.2m | 51% |
| Total Compensation | US$2.2m | US$2.2m | 100% |
Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. Flushing Financial pays out 49% of remuneration in the form of a salary, significantly higher than the industry average. It’s important to note that a slant towards non-salary compensation suggests that total pay is tied to the company’s performance.
NasdaqGS:FFIC CEO Compensation May 12th 2021
A Look at Flushing Financial Corporation’s Growth Numbers
Flushing Financial Corporation’s earnings per share (EPS) grew 9.9% per year over the last three years. In the last year, its revenue is up 37%.
It’s great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn’t shabby. We’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Flushing Financial Corporation Been A Good Investment?
Flushing Financial Corporation has not done too badly by shareholders, with a total return of 3.1%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
In Summary…
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That’s why we did some digging and identified 2 warning signs for Flushing Financial that investors should think about before committing capital to this stock.
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.
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Originally Appeared On: https://simplywall.st/stocks/us/banks/nasdaq-ffic/flushing-financial/news/we-think-some-shareholders-may-hesitate-to-increase-flushing