Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Tony McKim has been the CEO of The First Bancorp, Inc. (NASDAQ:FNLC) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Tony McKim's Compensation Compare With Similar Sized Companies?
Our data indicates that The First Bancorp, Inc. is worth US$291m, and total annual CEO compensation is US$858k. (This figure is for the year to December 2018). Notably, that's an increase of 17% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$520k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.0m.
That means Tony McKim receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at First Bancorp has changed over time.
Is The First Bancorp, Inc. Growing?
On average over the last three years, The First Bancorp, Inc. has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is up 4.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has The First Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most The First Bancorp, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Tony McKim is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying First Bancorp shares with their own money (free access).
Important note: First Bancorp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.