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Anders Tomson has been the CEO of Chemung Financial Corporation (NASDAQ:CHMG) since 2016. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Anders Tomson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Chemung Financial Corporation has a market cap of US$119m, and reported total annual CEO compensation of US$855k for the year to December 2019. That's just a smallish increase of 6.6% on last year. While we always look at total compensation first, we note that the salary component is less, at US$460k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$617k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 43% of total compensation out of all the companies we analysed, while other remuneration made up 57% of the pie. Our data reveals that Chemung Financial allocates salary in line with the wider market.
It would therefore appear that Chemung Financial Corporation pays Anders Tomson more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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 Chemung Financial has changed from year to year.
Is Chemung Financial Corporation Growing?
On average over the last three years, Chemung Financial Corporation has seen earnings per share (EPS) move in a favourable direction by 21% each year (using a line of best fit). It saw its revenue drop 9.6% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Chemung Financial Corporation Been A Good Investment?
Since shareholders would have lost about 31% over three years, some Chemung Financial Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Chemung Financial Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is moving in the right direction, we'd say shareholders would want better returns before the CEO is paid much more. On another note, we've spotted 1 warning sign for Chemung Financial that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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