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Is FNCB Bancorp, Inc.’s (NASDAQ:FNCB) CEO Paid At A Competitive Rate?

Alex Johannesen

Jerry Champi has been the CEO of FNCB Bancorp, Inc. (NASDAQ:FNCB) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for FNCB Bancorp

How Does Jerry Champi’s Compensation Compare With Similar Sized Companies?

According to our data, FNCB Bancorp, Inc. has a market capitalization of US$145m, and pays its CEO total annual compensation worth US$593k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$321k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$302k.

As you can see, Jerry Champi is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean FNCB Bancorp, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at FNCB Bancorp has changed from year to year.

NasdaqCM:FNCB CEO Compensation January 2nd 19

Is FNCB Bancorp, Inc. Growing?

FNCB Bancorp, Inc. has reduced its earnings per share by an average of 83% a year, over the last three years. It achieved revenue growth of 4.0% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has FNCB Bancorp, Inc. Been A Good Investment?

I think that the total shareholder return of 71%, over three years, would leave most FNCB Bancorp, Inc. shareholders smiling. 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…

We compared total CEO remuneration at FNCB Bancorp, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

On the other hand, returns have been good, so the company is doing something right. Considering this, shareholders are probably not too worried about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FNCB Bancorp.

Or you might prefer examine intently this intuitive graph showing past 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.