Key Insights

• Greene County Bancorp to hold its Annual General Meeting on 2nd of November
• CEO Don Gibson's total compensation includes salary of US$650.0k
• The overall pay is 71% above the industry average
• Greene County Bancorp's EPS declined by 2.1% over the past three years while total shareholder return over the past three years was 72%

Greene County Bancorp, Inc. (NASDAQ:GCBC) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 2nd of November. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

How Does Total Compensation For Don Gibson Compare With Other Companies In The Industry?

Our data indicates that Greene County Bancorp, Inc. has a market capitalization of US$480m, and total annual CEO compensation was reported as US$2.2m for the year to June 2024. Notably, that's an increase of 12% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$650k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.3m. Accordingly, our analysis reveals that Greene County Bancorp, Inc. pays Don Gibson north of the industry median. Furthermore, Don Gibson directly owns US$4.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 44% of total compensation out of all the companies we analyzed, while other remuneration made up 56% of the pie. Greene County Bancorp sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Greene County Bancorp, Inc.'s Growth

Over the last three years, Greene County Bancorp, Inc. has shrunk its earnings per share by 2.1% per year. It saw its revenue drop 10% over the last year.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

Boasting a total shareholder return of 72% over three years, Greene County Bancorp, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Greene County Bancorp (free visualization of insider trades).

Important note: Greene County Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.