In 2015 Jeff Stopko was appointed CEO of AmeriServ Financial, Inc. (NASDAQ:ASRV). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jeff Stopko's Compensation Compare With Similar Sized Companies?
Our data indicates that AmeriServ Financial, Inc. is worth US$73m, and total annual CEO compensation is US$537k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$328k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$497k.
So Jeff Stopko is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at AmeriServ Financial has changed over time.
Is AmeriServ Financial, Inc. Growing?
On average over the last three years, AmeriServ Financial, Inc. has grown earnings per share (EPS) by 36% each year (using a line of best fit). It achieved revenue growth of 2.1% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has AmeriServ Financial, Inc. Been A Good Investment?
Most shareholders would probably be pleased with AmeriServ Financial, Inc. for providing a total return of 39% over three years. 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.
Jeff Stopko is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if AmeriServ Financial insiders are buying or selling shares.
If you want to buy a stock that is better than AmeriServ Financial, this free list of high return, low debt companies is a great place to look.
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