We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Camden National Corporation's (NASDAQ:CAC) CEO For Now

Under the guidance of CEO Greg Dufour, Camden National Corporation (NASDAQ:CAC) has performed reasonably well recently. As shareholders go into the upcoming AGM on 27 April 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Camden National

Comparing Camden National Corporation's CEO Compensation With the industry

Our data indicates that Camden National Corporation has a market capitalization of US$688m, and total annual CEO compensation was reported as US$3.1m for the year to December 2020. Notably, that's an increase of 16% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$620k.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$1.6m. This suggests that Greg Dufour is paid more than the median for the industry. Furthermore, Greg Dufour directly owns US$4.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$620k	US$616k	20%
Other	US$2.5m	US$2.0m	80%
Total Compensation	US$3.1m	US$2.7m	100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. Camden National sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Camden National Corporation's Growth

Over the past three years, Camden National Corporation has seen its earnings per share (EPS) grow by 29% per year. In the last year, its revenue is up 4.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Camden National Corporation Been A Good Investment?

Camden National Corporation has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Camden National that you should be aware of before investing.

Switching gears from Camden National, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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