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In 2007 Steve Romaine was appointed CEO of Tompkins Financial Corporation (NYSEMKT:TMP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Romaine’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tompkins Financial Corporation has a market cap of US$1.2b, and is paying total annual CEO compensation of US$2.1m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$605k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.2m.
That means Steve Romaine receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Tompkins Financial has changed over time.
Is Tompkins Financial Corporation Growing?
On average over the last three years, Tompkins Financial Corporation has grown earnings per share (EPS) by 5.6% each year (using a line of best fit). In the last year, its revenue is up 8.2%.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Tompkins Financial Corporation Been A Good Investment?
Boasting a total shareholder return of 51% over three years, Tompkins Financial Corporation has done well by shareholders. 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.
Steve Romaine is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tompkins Financial (free visualization of insider trades).
Important note: Tompkins Financial 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.