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Does Citizens Holding Company's (NASDAQ:CIZN) CEO Salary Reflect Performance?

Simply Wall St

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Greg McKee has been the CEO of Citizens Holding Company (NASDAQ:CIZN) since 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for Citizens Holding

How Does Greg McKee's Compensation Compare With Similar Sized Companies?

Our data indicates that Citizens Holding Company is worth US$101m, and total annual CEO compensation is US$476k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$296k. 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$462k.

So Greg McKee is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Citizens Holding has changed from year to year.

NasdaqGM:CIZN CEO Compensation, July 8th 2019

Is Citizens Holding Company Growing?

Over the last three years Citizens Holding Company has shrunk its earnings per share by an average of 16% per year (measured with a line of best fit). Its revenue is down -6.4% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Citizens Holding Company Been A Good Investment?

Given the total loss of 5.7% over three years, many shareholders in Citizens Holding Company are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Greg McKee is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Citizens Holding.

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.