How Much is The First Bancorp, Inc.'s (NASDAQ:FNLC) CEO Getting Paid?
Tony McKim became the CEO of The First Bancorp, Inc. (NASDAQ:FNLC) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for First Bancorp
How Does Tony McKim's Compensation Compare With Similar Sized Companies?
According to our data, The First Bancorp, Inc. has a market capitalization of US$308m, and paid its CEO total annual compensation worth US$858k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$520k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at First Bancorp has changed from year to year.
Is The First Bancorp, Inc. Growing?
On average over the last three years, The First Bancorp, Inc. has grown earnings per share (EPS) by 13% each year (using a line of best fit). In the last year, its revenue is up 6.9%.
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 35%, over three years, would leave most The First Bancorp, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
The First Bancorp, Inc. is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Tony McKim deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Bancorp.
If you want to buy a stock that is better than First Bancorp, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
