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Should You Worry About Norwood Financial Corp.'s (NASDAQ:NWFL) CEO Pay Cheque?

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Simply Wall St
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In 2010 Lew Critelli was appointed CEO of Norwood Financial Corp. (NASDAQ:NWFL). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Norwood Financial

How Does Lew Critelli's Compensation Compare With Similar Sized Companies?

According to our data, Norwood Financial Corp. has a market capitalization of US$226m, and paid its CEO total annual compensation worth US$582k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$325k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.

Most shareholders would consider it a positive that Lew Critelli takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Norwood Financial has changed from year to year.

NasdaqGM:NWFL CEO Compensation, December 12th 2019
NasdaqGM:NWFL CEO Compensation, December 12th 2019

Is Norwood Financial Corp. Growing?

Over the last three years Norwood Financial Corp. has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). Its revenue is up 4.1% over last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Norwood Financial Corp. Been A Good Investment?

Most shareholders would probably be pleased with Norwood Financial Corp. for providing a total return of 77% 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 looks like Norwood Financial Corp. pays its CEO less than similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Lew Critelli deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Norwood Financial.

Important note: Norwood 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.

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.

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. Thank you for reading.