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Is Codorus Valley Bancorp Inc’s (NASDAQ:CVLY) CEO Paid Enough Relative To Peers?

Larry Miller has been the CEO of Codorus Valley Bancorp Inc (NASDAQ:CVLY) since 1986. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Codorus Valley Bancorp

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

According to our data, Codorus Valley Bancorp Inc has a market capitalization of US$224m, and pays its CEO total annual compensation worth US$513k. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$250k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$942k.

Most shareholders would consider it a positive that Larry Miller takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Codorus Valley Bancorp has changed from year to year.

NasdaqGM:CVLY CEO Compensation November 29th 18
NasdaqGM:CVLY CEO Compensation November 29th 18

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 2.3% per year. It achieved revenue growth of 15% over the last year.

I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. Although we’ll stop short of calling the stock a top performer, we think the company has potential.

We don’t have analyst forecasts, but 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?

I think that the total shareholder return of 40%, over three years, would leave most Codorus Valley Bancorp Inc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

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

Larry Miller receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. So you may want to check if insiders are buying Codorus Valley Bancorp shares with their own money (free access).

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

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 editorial-team@simplywallst.com.