Does Union Bankshares Inc’s (NASDAQ:UNB) CEO Pay Reflect Performance?
David Silverman has been the CEO of Union Bankshares Inc (NASDAQ:UNB) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for Union Bankshares
How Does David Silverman’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Union Bankshares Inc has a market cap of US$204m, and is paying total annual CEO compensation of US$537k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$335k. 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$932k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Union Bankshares has changed from year to year.
Is Union Bankshares Inc Growing?
Union Bankshares Inc has increased its earnings per share (EPS) by an average of 7.0% a year, over the last three years In the last year, its revenue is up 4.9%.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Union Bankshares Inc Been A Good Investment?
Boasting a total shareholder return of 73% over three years, Union Bankshares Inc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Union Bankshares Inc is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while David Silverman is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. So you may want to check if insiders are buying Union Bankshares shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
