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Does Codorus Valley Bancorp, Inc.'s (NASDAQ:CVLY) CEO Salary Reflect Performance?

Simply Wall St

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Larry Miller has been the CEO of Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) since 1986. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for Codorus Valley Bancorp

How Does Larry Miller's Compensation Compare With Similar Sized Companies?

Our data indicates that Codorus Valley Bancorp, Inc. is worth US$217m, and total annual CEO compensation is US$732k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$387k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.

A first glance this seems like a real positive for shareholders, since Larry Miller is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

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

NasdaqGM:CVLY CEO Compensation, July 8th 2019

Is Codorus Valley Bancorp, Inc. Growing?

On average over the last three years, Codorus Valley Bancorp, Inc. has grown earnings per share (EPS) by 12% each year (using a line of best fit). In the last year, its revenue is up 6.8%.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Codorus Valley Bancorp, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Codorus Valley Bancorp, Inc. for providing a total return of 36% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It looks like Codorus Valley Bancorp, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Larry Miller deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Codorus Valley Bancorp shares with their own money (free access).

If you want to buy a stock that is better than Codorus Valley Bancorp, 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.