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Is Evans Bancorp, Inc. (NYSEMKT:EVBN) Overpaying Its CEO?

Simply Wall St

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David Nasca became the CEO of Evans Bancorp, Inc. (NYSEMKT:EVBN) 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 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.

Check out our latest analysis for Evans Bancorp

How Does David Nasca's Compensation Compare With Similar Sized Companies?

Our data indicates that Evans Bancorp, Inc. is worth US$175m, and total annual CEO compensation is US$1.1m. (This is based on the year to December 2018). That's a notable increase of 24% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$484k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.0m.

So David Nasca is paid around the average of 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 a visual representation of the CEO compensation at Evans Bancorp, below.

AMEX:EVBN CEO Compensation, May 10th 2019
AMEX:EVBN CEO Compensation, May 10th 2019

Is Evans Bancorp, Inc. Growing?

Over the last three years Evans Bancorp, Inc. has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Evans Bancorp, Inc. Been A Good Investment?

I think that the total shareholder return of 65%, over three years, would leave most Evans Bancorp, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

David Nasca is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Evans Bancorp (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.