Bob Dumas has been the CEO of Auburn National Bancorporation, Inc. (NASDAQ:AUBN) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Auburn National Bancorporation pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Bob Dumas Compare With Other Companies In The Industry?
According to our data, Auburn National Bancorporation, Inc. has a market capitalization of US$135m, and paid its CEO total annual compensation worth US$469k over the year to December 2019. That's a notable increase of 11% on last year. In particular, the salary of US$328.5k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$631k. So it looks like Auburn National Bancorporation compensates Bob Dumas in line with the median for the industry. Moreover, Bob Dumas also holds US$1.5m worth of Auburn National Bancorporation 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. Auburn National Bancorporation is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Auburn National Bancorporation, Inc.'s Growth
Auburn National Bancorporation, Inc. saw earnings per share stay pretty flat over the last three years. In the last year, its revenue is down 8.3%.
We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Auburn National Bancorporation, Inc. Been A Good Investment?
Auburn National Bancorporation, Inc. has generated a total shareholder return of 17% 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.
As we touched on above, Auburn National Bancorporation, Inc. 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. On the other hand, EPS and shareholder returns have been stable over the last three years, but have not grown substantially. So, although the CEO compensation seems reasonable, shareholders might want to see some further progress before they agree that Bob should get a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Auburn National Bancorporation (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Important note: Auburn National Bancorporation is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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