Should You Worry About Union Bankshares, Inc.’s (NASDAQ:UNB) CEO Pay Cheque?

David Silverman became the CEO of Union Bankshares, Inc. (NASDAQ:UNB) in 2012. 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.

Check out our latest analysis for Union Bankshares

How Does David Silverman’s Compensation Compare With Similar Sized Companies?

According to our data, Union Bankshares, Inc. has a market capitalization of US$134m, and paid its CEO total annual compensation worth US$542k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$350k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$543k.

That means David Silverman receives fairly typical remuneration for the CEO of a company that size. 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, below, how CEO compensation at Union Bankshares has changed over time.

NasdaqGM:UNB CEO Compensation, March 3rd 2020
NasdaqGM:UNB CEO Compensation, March 3rd 2020

Is Union Bankshares, Inc. Growing?

Over the last three years Union Bankshares, Inc. has shrunk its earnings per share by an average of 2.3% per year (measured with a line of best fit). Its revenue is up 6.9% over last year.

Unfortunately there is a complete lack of earnings per share improvement, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Union Bankshares, Inc. Been A Good Investment?

Since shareholders would have lost about 19% over three years, some Union Bankshares, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

David Silverman is paid around the same as most CEOs of similar size companies.

The company isn’t growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Union Bankshares (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.