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Should You Worry About Citizens & Northern Corporation's (NASDAQ:CZNC) CEO Pay Cheque?

Simply Wall St

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Brad Scovill has been the CEO of Citizens & Northern Corporation (NASDAQ:CZNC) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Citizens & Northern

How Does Brad Scovill's Compensation Compare With Similar Sized Companies?

According to our data, Citizens & Northern Corporation has a market capitalization of US$338m, and pays its CEO total annual compensation worth US$860k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$416k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.

A first glance this seems like a real positive for shareholders, since Brad Scovill is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Citizens & Northern has changed over time.

NasdaqCM:CZNC CEO Compensation, July 17th 2019

Is Citizens & Northern Corporation Growing?

Citizens & Northern Corporation has increased its earnings per share (EPS) by an average of 9.8% a year, over the last three years (using a line of best fit). Its revenue is up 15% over last year.

This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Citizens & Northern Corporation Been A Good Investment?

Most shareholders would probably be pleased with Citizens & Northern Corporation for providing a total return of 37% over three years. 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.

In Summary...

It appears that Citizens & Northern Corporation remunerates its CEO below most similar sized companies.

Brad Scovill is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Citizens & Northern shares (free trial).

Important note: Citizens & Northern 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 editorial-team@simplywallst.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. Thank you for reading.