Carissa Rodeheaver became the CEO of First United Corporation (NASDAQ:FUNC) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Carissa Rodeheaver's Compensation Compare With Similar Sized Companies?
Our data indicates that First United Corporation is worth US$172m, and total annual CEO compensation was reported as US$394k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$378k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at First United, below.
Is First United Corporation Growing?
First United Corporation has increased its earnings per share (EPS) by an average of 32% a year, over the last three years (using a line of best fit). Its revenue is up 6.2% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has First United Corporation Been A Good Investment?
I think that the total shareholder return of 63%, over three years, would leave most First United Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like First United Corporation pays its CEO less than similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Carissa Rodeheaver deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. 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 United.
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.
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