Don Gibson became the CEO of Greene County Bancorp, Inc. (NASDAQ:GCBC) in 2007, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Greene County Bancorp.

View our latest analysis for Greene County Bancorp

Comparing Greene County Bancorp, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Greene County Bancorp, Inc. has a market capitalization of US$209m, and reported total annual CEO compensation of US$1.4m for the year to June 2020. That's a notable increase of 8.9% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$513k.

On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$790k. Accordingly, our analysis reveals that Greene County Bancorp, Inc. pays Don Gibson north of the industry median. Moreover, Don Gibson also holds US$2.3m worth of Greene County Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. Greene County Bancorp pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Greene County Bancorp, Inc.'s Growth Numbers

Over the past three years, Greene County Bancorp, Inc. has seen its earnings per share (EPS) grow by 15% per year. In the last year, its revenue is up 8.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Greene County Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 28% over three years, some Greene County Bancorp, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Don is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Don is underpaid, in fact compensation is definitely on the higher side.

Whatever your view on compensation, you might want to check if insiders are buying or selling Greene County Bancorp shares (free trial).

Switching gears from Greene County Bancorp, 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.

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. 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.

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