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Is Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) Excessively Paying Its CEO?

Larry Miller has been the CEO of Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) since 1986. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Codorus Valley Bancorp

How Does Larry Miller's Compensation Compare With Similar Sized Companies?

Our data indicates that Codorus Valley Bancorp, Inc. is worth US$221m, and total annual CEO compensation was reported as US$732k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$387k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Codorus Valley Bancorp has changed over time.

NasdaqGM:CVLY CEO Compensation, January 9th 2020
NasdaqGM:CVLY CEO Compensation, January 9th 2020

Is Codorus Valley Bancorp, Inc. Growing?

Over the last three years Codorus Valley Bancorp, Inc. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). In the last year, its revenue changed by just 0.01%.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Codorus Valley Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 2.4% over three years, Codorus Valley Bancorp, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Codorus Valley Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size.

Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn't mean that Larry Miller is paid too much. Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. So you may want to check if insiders are buying Codorus Valley Bancorp shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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