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Anders Tomson has been the CEO of Chemung Financial Corporation (NASDAQ:CHMG) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Chemung Financial.
How Does Total Compensation For Anders Tomson Compare With Other Companies In The Industry?
Our data indicates that Chemung Financial Corporation has a market capitalization of US$175m, and total annual CEO compensation was reported as US$855k for the year to December 2019. That's just a smallish increase of 6.6% on last year. In particular, the salary of US$460.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$877k. From this we gather that Anders Tomson is paid around the median for CEOs in the industry. Moreover, Anders Tomson also holds US$1.3m worth of Chemung Financial stock directly under their own name.
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that Chemung Financial pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Chemung Financial Corporation's Growth
Chemung Financial Corporation has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 3.3% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Chemung Financial Corporation Been A Good Investment?
Since shareholders would have lost about 14% over three years, some Chemung Financial Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, Chemung Financial Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Anders is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Chemung Financial (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
This article by Simply Wall St is general in nature. 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.
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