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Is Community Bank System, Inc.'s (NYSE:CBU) CEO Paid Enough Relative To Peers?

Simply Wall St

Mark Tryniski became the CEO of Community Bank System, Inc. (NYSE:CBU) in 2006. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Community Bank System

How Does Mark Tryniski's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Community Bank System, Inc. has a market cap of US$3.2b, and is paying total annual CEO compensation of US$3.0m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$800k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.

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 a visual representation of the CEO compensation at Community Bank System, below.

NYSE:CBU CEO Compensation, August 19th 2019

Is Community Bank System, Inc. Growing?

On average over the last three years, Community Bank System, Inc. has grown earnings per share (EPS) by 19% each year (using a line of best fit). In the last year, its revenue is up 3.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has Community Bank System, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Community Bank System, Inc. for providing a total return of 45% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

It appears that Community Bank System, Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Mark Tryniski deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Community Bank System (free visualization of insider trades).

If you want to buy a stock that is better than Community Bank System, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.