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Does Elmira Savings Bank's (NASDAQ:ESBK) CEO Salary Reflect Performance?

Simply Wall St

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Tom Carr became the CEO of Elmira Savings Bank (NASDAQ:ESBK) in 2014. 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 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 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$55m, and pays its CEO total annual compensation worth US$552k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$378k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$464k.

So Tom Carr is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Elmira Savings Bank, below.

NasdaqCM:ESBK CEO Compensation, July 12th 2019
NasdaqCM:ESBK CEO Compensation, July 12th 2019

Is Elmira Savings Bank Growing?

On average over the last three years, Elmira Savings Bank has grown earnings per share (EPS) by 2.4% each year (using a line of best fit). Its revenue is down -2.4% over last year.

I would prefer it if there was revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Elmira Savings Bank Been A Good Investment?

Given the total loss of 3.4% 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.

We would like to see somewhat stronger per share growth. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. Shareholders may want to check for free if Elmira Savings Bank insiders are buying or selling shares.

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.