Noah Breslow has been the CEO of On Deck Capital, Inc. (NYSE:ONDK) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for On Deck Capital
How Does Noah Breslow's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that On Deck Capital, Inc. has a market cap of US$253m, and reported total annual CEO compensation of US$2.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$483k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
As you can see, Noah Breslow is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean On Deck Capital, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at On Deck Capital, below.
Is On Deck Capital, Inc. Growing?
On Deck Capital, Inc. has increased its earnings per share (EPS) by an average of 101% a year, over the last three years (using a line of best fit). Its revenue is up 20% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has On Deck Capital, Inc. Been A Good Investment?
With a three year total loss of 43%, On Deck Capital, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at On Deck Capital, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if On Deck Capital insiders are buying or selling shares.