Dick Grafmyre has been the CEO of Penns Woods Bancorp, Inc. (NASDAQ:PWOD) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
How Does Dick Grafmyre's Compensation Compare With Similar Sized Companies?
Our data indicates that Penns Woods Bancorp, Inc. is worth US$203m, and total annual CEO compensation is US$1.1m. (This figure is for the year to December 2018). We note that's an increase of 16% above last year. While we always look at total compensation first, we note that the salary component is less, at US$723k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
So Dick Grafmyre is paid around the average of the companies we looked at. 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 a visual representation of the CEO compensation at Penns Woods Bancorp, below.
Is Penns Woods Bancorp, Inc. Growing?
Penns Woods Bancorp, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 4.9%.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Penns Woods Bancorp, Inc. Been A Good Investment?
With a total shareholder return of 17% over three years, Penns Woods Bancorp, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Dick Grafmyre is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Penns Woods Bancorp.
Important note: Penns Woods 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.