Why These C.E.O.s Got Paid So Much in the Pandemic
Companies defend stratospheric pay for their leaders.
By Andrew Ross Sorkin, Jason Karaian, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch and Ephrat Livni
Pandemic pay packages
Community Bank System Q1 Profit Tops Estimates
Community Bank System, Inc. (CBU) reported first quarter operating earnings per share of $0.97, up from $0.77, prior year. On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.80, for the quarter. Analysts’ estimates typically exclude special items.
Community Bank System reported first quarter net income of $52.9 million, or $0.97 per share compared to $40.1 million of net income, or $0.76 per share, last year.
First quarter total revenues were $152.5 million, an increase of 2.6%, from last year. Analysts expected revenue of $153.79 million, for the quarter.
During the first quarter of 2021, the company declared a quarterly cash dividend of $0.42 per share on its common stock, up 2.4% from a year ago.
Eaton To Acquire 50% Stake In Jiangsu YiNeng Electric’s Busway Business – Quick Facts
Power management company Eaton (ETN) announced Monday it has signed an agreement to acquire a 50 percent stake in Jiangsu YiNeng Electric’s busway business, which manufactures and markets busway products in China and had sales of $60 million in 2020. This will add busway to Eaton’s power distribution portfolio in Asia Pacific.
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2021. After the transaction closes, the company will do business as Eaton Busway Jiangsu.
Founded in 2002 and headquartered in Jiangsu, China, the company serves the data center, infrastructure, commercial building, telecommunications, and industrial segments.
Flagstar Bancorp Q1 Profit Tops Estimates
Flagstar Bancorp, Inc. (FBC), the holding company for Flagstar Bank, reported first quarter net income of $149 million, or $2.80 per share, compared to net income of $46 million, or $0.80 per share, last year. On an adjusted basis, net income was $176 million, or $3.31 per share, for the first quarter 2021. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $2.63, for the quarter. Analysts’ estimates typically exclude special items. Net interest income increased to $189 million from $148 million, prior year.
Flagstar Bancorp, Inc. announced its board has declared a quarterly cash dividend of $0.06 per share on its common stock. The dividend will be payable June 15, 2021, to shareholders of record at the close of business June 1, 2021.
Shares of Flagstar Bancorp were up 4% in pre-market trade on Monday.
Gold Prices Rise On Dollar Weakness
Gold prices inched higher on Monday as the dollar index weakened, heading into the FOMC meeting.
Spot gold edged up 0.2 percent to $1,779.95 per ounce, while U.S. gold futures were up 0.1 percent at $1,780.10.
The dollar slumped to an almost eight-week low against other major currencies amid speculation that Fed Chair Jerome Powell will stick to the stance of super-easy monetary policy while the Federal Open Market Committee (FOMC) ends its two-day meeting on Wednesday.
Amid signs of rising inflation, markets will be hanging on his every word at the press conference.
In economic releases, reports on durable goods orders, consumer confidence and personal income and spending may attract attention along with the preliminary reading on first quarter GDP.
Gold falls ₹81; silver tumbles ₹984
Gold prices fell ₹81 to ₹46,976 per 10 gram; Silver dipped ₹984 to ₹67,987 per kg
Gold prices in the national capital on April 26 fell ₹81 to ₹46,976 per 10 gram due to rupee appreciation, according to HDFC Securities.
In the previous trade, the precious metal had closed at ₹47,057 per 10 gram.
Silver also dipped ₹984 to ₹67,987 per kg, from ₹68,971 per kg in the previous trade.
The rupee advanced by 24 paise to 74.77 against the U.S. dollar in opening trade on April 26.
In the international market, gold was quoting marginally higher at $1,779 per ounce and silver was flat at $26.02 per ounce.
“Gold prices were supported by weaker dollar and pandemic worries,” said HDFC Securities Senior Analyst (Commodities) Tapan Patel.
First BanCorp. Q1 Profit Tops Estimates
First BanCorp. (FBP), the bank holding company for FirstBank Puerto Rico, reported net income of $61.2 million, or $0.28 per share, for the first quarter of 2021, compared to $2.3 million, or $0.01 per share, a year ago. Adjusted profit per share was $0.31 compared to a loss of $0.03. On average, four analysts polled by Thomson Reuters expected the company to report profit per share of $0.24, for the quarter. Analysts’ estimates typically exclude special items.
First quarter net interest income increased to $176.26 million from $138.65 million, prior year. Total non-interest income was $30.96 million compared to $30.20 million. Analysts expected revenue of $179.48 million, for the quarter.
Albertsons Companies Q4 Adj. Profit Rises
Albertsons Companies, Inc. (ACI) reported fourth quarter adjusted net income of $347.2 million, or $0.60 per share, compared to $194.2 million, or $0.33 per share, a year ago. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.51, for the quarter. Analysts’ estimates typically exclude special items.
Fourth quarter net loss was $144.2 million or $0.37 per share, compared to net income of $67.8 million or $0.12 per share, last year.
Fourth quarter sales and other revenue was $15.8 billion compared to $15.4 billion, a year ago. Analysts expected revenue of $15.67 billion, for the quarter.
For fiscal 2021, the company expects adjusted net income per Class A share in the range of $1.95 per share to $2.05 per share.