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Is Cortland Bancorp's (NASDAQ:CLDB) CEO Overpaid Relative To Its Peers?

Simply Wall St

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Jim Gasior has been the CEO of Cortland Bancorp (NASDAQ:CLDB) since 2009. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Cortland Bancorp

How Does Jim Gasior's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Cortland Bancorp has a market cap of US$98m, and is paying total annual CEO compensation of US$573k. (This is based on the year to December 2018). That's a notable increase of 23% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$297k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$440k.

Thus we can conclude that Jim Gasior receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cortland Bancorp. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

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

NasdaqCM:CLDB CEO Compensation, May 13th 2019
NasdaqCM:CLDB CEO Compensation, May 13th 2019

Is Cortland Bancorp Growing?

Cortland Bancorp has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cortland Bancorp Been A Good Investment?

I think that the total shareholder return of 54%, over three years, would leave most Cortland Bancorp shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Cortland Bancorp, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cortland Bancorp.

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

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.