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What We Learned About FNCB Bancorp's (NASDAQ:FNCB) CEO Pay

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Simply Wall St
·3 min read
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Jerry Champi has been the CEO of FNCB Bancorp, Inc. (NASDAQ:FNCB) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether FNCB Bancorp pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for FNCB Bancorp

How Does Total Compensation For Jerry Champi Compare With Other Companies In The Industry?

According to our data, FNCB Bancorp, Inc. has a market capitalization of US$131m, and paid its CEO total annual compensation worth US$657k over the year to December 2019. Notably, that's an increase of 17% over the year before. We note that the salary portion, which stands at US$339.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$626k. This suggests that FNCB Bancorp remunerates its CEO largely in line with the industry average. Moreover, Jerry Champi also holds US$581k worth of FNCB Bancorp stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

US$339k

US$331k

52%

Other

US$318k

US$230k

48%

Total Compensation

US$657k

US$561k

100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. According to our research, FNCB Bancorp has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

A Look at FNCB Bancorp, Inc.'s Growth Numbers

FNCB Bancorp, Inc.'s earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue is up 9.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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?

FNCB Bancorp, Inc. has not done too badly by shareholders, with a total return of 2.3%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we noted earlier, FNCB Bancorp pays its CEO in line with similar-sized companies belonging to the same industry. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for FNCB Bancorp (1 is a bit unpleasant!) that you should be aware of before investing here.

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

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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