Does Elmira Savings Bank's (NASDAQ:ESBK) CEO Salary Compare Well With Others?
Tom Carr has been the CEO of Elmira Savings Bank (NASDAQ:ESBK) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Elmira Savings Bank
How Does Tom Carr's Compensation Compare With Similar Sized Companies?
According to our data, Elmira Savings Bank has a market capitalization of US$57m, and paid its CEO total annual compensation worth US$552k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$378k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.
So Tom Carr 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.
You can see, below, how CEO compensation at Elmira Savings Bank has changed over time.
Is Elmira Savings Bank Growing?
Over the last three years Elmira Savings Bank has shrunk its earnings per share by an average of 5.3% per year (measured with a line of best fit). In the last year, its revenue is down 1.3%.
Sadly for shareholders, earnings per share are actually down, over 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Elmira Savings Bank Been A Good Investment?
Given the total loss of 4.4% over three years, many shareholders in Elmira Savings Bank are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Tom Carr is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Elmira Savings Bank (free visualization of insider trades).
Important note: Elmira Savings Bank may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
