In 2012 David Silverman was appointed CEO of Union Bankshares, Inc. (NASDAQ:UNB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Silverman's Compensation Compare With Similar Sized Companies?
According to our data, Union Bankshares, Inc. has a market capitalization of US$153m, and pays its CEO total annual compensation worth US$563k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$350k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.
A first glance this seems like a real positive for shareholders, since David Silverman is paid less than the average total compensation paid by similar sized companies. 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 Union Bankshares, below.
Is Union Bankshares, Inc. Growing?
Earnings per share at Union Bankshares, Inc. are much the same as they were three years ago, albeit with a positive trend. Its revenue is up 3.3% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Union Bankshares, Inc. Been A Good Investment?
With a total shareholder return of 8.6% over three years, Union Bankshares, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that Union Bankshares, Inc. remunerates its CEO below most similar sized companies.
David Silverman receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. However I do not find the CEO compensation to be concerning. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Union Bankshares.
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.
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