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In 2015 Brad Scovill was appointed CEO of Citizens & Northern Corporation (NASDAQ:CZNC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Brad Scovill’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Citizens & Northern Corporation has a market cap of US$312m, and is paying total annual CEO compensation of US$767k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$408k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.6m.
Most shareholders would consider it a positive that Brad Scovill takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Citizens & Northern, below.
Is Citizens & Northern Corporation Growing?
Over the last three years, Citizens & Northern Corporation has not seen its earnings per share change much, though they have deteriorated slightly. Its revenue is up 12% over last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Citizens & Northern Corporation Been A Good Investment?
Most shareholders would probably be pleased with Citizens & Northern Corporation for providing a total return of 42% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
It looks like Citizens & Northern Corporation pays its CEO less than similar sized companies.
Brad Scovill receives relatively low remuneration compared to similar sized companies. And while the company isn’t growing earnings per share, total returns have been pleasing. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Citizens & Northern (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.