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Does Chemung Financial Corporation's (NASDAQ:CHMG) CEO Pay Compare Well With Peers?

Simply Wall St

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Anders Tomson became the CEO of Chemung Financial Corporation (NASDAQ:CHMG) in 2016. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Chemung Financial

How Does Anders Tomson's Compensation Compare With Similar Sized Companies?

According to our data, Chemung Financial Corporation has a market capitalization of US$222m, and pays its CEO total annual compensation worth US$802k. (This is based on the year to December 2018). That's just a smallish increase of 0.4% on last year. While we always look at total compensation first, we note that the salary component is less, at US$417k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.

So Anders Tomson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Chemung Financial has changed from year to year.

NasdaqGS:CHMG CEO Compensation, June 13th 2019

Is Chemung Financial Corporation Growing?

On average over the last three years, Chemung Financial Corporation has grown earnings per share (EPS) by 21% each year (using a line of best fit). Its revenue is up 14% over last year.

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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Chemung Financial Corporation Been A Good Investment?

Most shareholders would probably be pleased with Chemung Financial Corporation for providing a total return of 62% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Anders Tomson is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Chemung Financial (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.