Skip Hageboeck has been the CEO of City Holding Company (NASDAQ:CHCO) since 2005. 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. 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.
How Does Skip Hageboeck’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that City Holding Company has a market cap of US$1.2b, and is paying total annual CEO compensation of US$1.4m. That’s just a smallish increase of 7.3% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.3m.
Most shareholders would consider it a positive that Skip Hageboeck takes less 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.
You can see, below, how CEO compensation at City Holding has changed over time.
Is City Holding Company Growing?
On average over the last three years, City Holding Company has grown earnings per share (EPS) by 6.8% each year. It achieved revenue growth of 7.9% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has City Holding Company Been A Good Investment?
I think that the total shareholder return of 66%, over three years, would leave most City Holding Company shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
It appears that City Holding Company remunerates its CEO below most similar sized companies.
It’s well worth noting that while Skip Hageboeck is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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 email@example.com.