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How Much Is CNB Financial Corporation (NASDAQ:CCNE) CEO Getting Paid?

Simply Wall St
·4 min read

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Joe Bower has been the CEO of CNB Financial Corporation (NASDAQ:CCNE) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether CNB Financial pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for CNB Financial

How Does Total Compensation For Joe Bower Compare With Other Companies In The Industry?

According to our data, CNB Financial Corporation has a market capitalization of US$253m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2019. That's a fairly small increase of 3.9% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$590k.

For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$933k. Accordingly, our analysis reveals that CNB Financial Corporation pays Joe Bower north of the industry median. Furthermore, Joe Bower directly owns US$5.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$590k

US$572k

35%

Other

US$1.1m

US$1.0m

65%

Total Compensation

US$1.7m

US$1.6m

100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. CNB Financial sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

CNB Financial Corporation's Growth

Over the past three years, CNB Financial Corporation has seen its earnings per share (EPS) grow by 20% per year. Its revenue is up 8.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CNB Financial Corporation Been A Good Investment?

Since shareholders would have lost about 28% over three years, some CNB Financial Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, CNB Financial Corporation is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its earnings per share growth, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for CNB Financial that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.