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Is Farmers National Banc Corp.'s (NASDAQ:FMNB) CEO Salary Justified?

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Simply Wall St
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Kevin Helmick became the CEO of Farmers National Banc Corp. (NASDAQ:FMNB) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

See our latest analysis for Farmers National Banc

How Does Kevin Helmick's Compensation Compare With Similar Sized Companies?

Our data indicates that Farmers National Banc Corp. is worth US$423m, and total annual CEO compensation was reported as US$985k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$433k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.

Most shareholders would consider it a positive that Kevin Helmick takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Farmers National Banc has changed over time.

NasdaqCM:FMNB CEO Compensation, December 3rd 2019
NasdaqCM:FMNB CEO Compensation, December 3rd 2019

Is Farmers National Banc Corp. Growing?

Farmers National Banc Corp. has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 7.1%.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has Farmers National Banc Corp. Been A Good Investment?

Farmers National Banc Corp. has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Farmers National Banc Corp. is currently paying its CEO below what is normal for companies of its size.

Considering the underlying business is growing earnings, this would suggest the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Kevin Helmick is paid too much. It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling Farmers National Banc shares (free trial).

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.

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.

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. Thank you for reading.