Steve Romaine became the CEO of Tompkins Financial Corporation (NYSEMKT:TMP) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Steve Romaine's Compensation Compare With Similar Sized Companies?
Our data indicates that Tompkins Financial Corporation is worth US$1.2b, and total annual CEO compensation was reported as US$1.4m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$636k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
Most shareholders would consider it a positive that Steve Romaine takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Tompkins Financial, below.
Is Tompkins Financial Corporation Growing?
On average over the last three years, Tompkins Financial Corporation has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 3.1% 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 modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Tompkins Financial Corporation Been A Good Investment?
Tompkins Financial Corporation has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It appears that Tompkins Financial Corporation remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Steve Romaine is overcompensated. It's good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tompkins Financial.
Important note: Tompkins Financial 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.
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