In 2009 Jim Gasior was appointed CEO of Cortland Bancorp (NASDAQ:CLDB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jim Gasior's Compensation Compare With Similar Sized Companies?
According to our data, Cortland Bancorp has a market capitalization of US$96m, and paid its CEO total annual compensation worth US$573k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$297k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$506k.
So Jim Gasior receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Cortland Bancorp has changed over time.
Is Cortland Bancorp Growing?
Over the last three years Cortland Bancorp has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). Its revenue is up 9.5% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cortland Bancorp Been A Good Investment?
Cortland Bancorp has served shareholders reasonably well, with a total return of 29% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Jim Gasior is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Cortland Bancorp insiders are buying or selling shares.
If you want to buy a stock that is better than Cortland Bancorp, this free list of high return, low debt companies is a great place to look.
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