Key Insights

• HarborOne Bancorp will host its Annual General Meeting on 15th of May

• Total pay for CEO Joe Casey includes US$700.0k salary

• The overall pay is 104% above the industry average

• HarborOne Bancorp's three-year loss to shareholders was 20% while its EPS was down 30% over the past three years

HarborOne Bancorp, Inc. (NASDAQ:HONE) has not performed well recently and CEO Joe Casey will probably need to up their game. At the upcoming AGM on 15th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for HarborOne Bancorp

How Does Total Compensation For Joe Casey Compare With Other Companies In The Industry?

According to our data, HarborOne Bancorp, Inc. has a market capitalization of US$450m, and paid its CEO total annual compensation worth US$2.9m over the year to December 2023. Notably, that's an increase of 8.5% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$700k.

For comparison, other companies in the American Banks industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.4m. Accordingly, our analysis reveals that HarborOne Bancorp, Inc. pays Joe Casey north of the industry median. What's more, Joe Casey holds US$4.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. HarborOne Bancorp sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

HarborOne Bancorp, Inc.'s Growth

Over the last three years, HarborOne Bancorp, Inc. has shrunk its earnings per share by 30% per year. It saw its revenue drop 14% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has HarborOne Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 20% over three years, some HarborOne Bancorp, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for HarborOne Bancorp that investors should be aware of in a dynamic business environment.

Switching gears from HarborOne 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.

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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.