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Kevin Helmick has been the CEO of Farmers National Banc Corp. (NASDAQ:FMNB) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Farmers National Banc pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Kevin Helmick Compare With Other Companies In The Industry?
According to our data, Farmers National Banc Corp. has a market capitalization of US$330m, and paid its CEO total annual compensation worth US$1.1m over the year to December 2019. We note that's an increase of 9.2% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$460k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.2m. From this we gather that Kevin Helmick is paid around the median for CEOs in the industry. Moreover, Kevin Helmick also holds US$1.4m worth of Farmers National Banc stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Farmers National Banc is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Farmers National Banc Corp.'s Growth Numbers
Over the past three years, Farmers National Banc Corp. has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 10% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Farmers National Banc Corp. Been A Good Investment?
Since shareholders would have lost about 4.7% over three years, some Farmers National Banc Corp. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, Farmers National Banc Corp. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Farmers National Banc (1 doesn't sit too well with us!) that you should be aware of before investing here.
Switching gears from Farmers National Banc, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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