Here’s What We Think About Plumas Bancorp’s (NASDAQ:PLBC) CEO Pay
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Andy Ryback has been the CEO of Plumas Bancorp (NASDAQ:PLBC) since 2010. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Plumas Bancorp
How Does Andy Ryback’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Plumas Bancorp has a market cap of US$126m, and is paying total annual CEO compensation of US$449k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$275k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$300k.
Thus we can conclude that Andy Ryback receives more in total compensation than the median of a group of companies in the same market, and of similar size to Plumas Bancorp. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Plumas Bancorp has changed from year to year.
Is Plumas Bancorp Growing?
Plumas Bancorp has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 15%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Plumas Bancorp Been A Good Investment?
Boasting a total shareholder return of 193% over three years, Plumas Bancorp has done well by shareholders. 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.
In Summary…
We compared total CEO remuneration at Plumas Bancorp with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Plumas Bancorp (free visualization of insider trades).
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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 editorial-team@simplywallst.com.
