Carissa Rodeheaver became the CEO of First United Corporation (NASDAQ:FUNC) in 2016. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Carissa Rodeheaver's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that First United Corporation has a market cap of US$148m, and is paying total annual CEO compensation of US$394k. (This figure is for the year to December 2018). Notably, the salary of US$378k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$490k.
So Carissa Rodeheaver 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 First United, below.
Is First United Corporation Growing?
Over the last three years First United Corporation has shrunk its earnings per share by an average of 1.8% per year (measured with a line of best fit). Its revenue is up 8.2% over last year.
The lack of earnings per share growth in the last three years is unimpressive. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has First United Corporation Been A Good Investment?
I think that the total shareholder return of 115%, over three years, would leave most First United Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Carissa Rodeheaver is paid around what is normal the leaders of comparable size companies.
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling First United shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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