Why We Think The CEO Of City Holding Company (NASDAQ:CHCO) May Soon See A Pay Rise

Key Insights

• City Holding will host its Annual General Meeting on 30th of April
• Total pay for CEO Skip Hageboeck includes US$674.7k salary
• The overall pay is 41% below the industry average
• Over the past three years, City Holding's EPS grew by 12% and over the past three years, the total shareholder return was 62%

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Shareholders will be pleased by the impressive results for City Holding Company (NASDAQ:CHCO) recently and CEO Skip Hageboeck has played a key role. At the upcoming AGM on 30th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for City Holding

How Does Total Compensation For Skip Hageboeck Compare With Other Companies In The Industry?

Our data indicates that City Holding Company has a market capitalization of US$1.7b, and total annual CEO compensation was reported as US$1.9m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$675k.

On comparing similar companies from the American Banks industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$3.2m. Accordingly, City Holding pays its CEO under the industry median. Furthermore, Skip Hageboeck directly owns US$6.5m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. City Holding sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

City Holding Company's Growth

Over the past three years, City Holding Company has seen its earnings per share (EPS) grow by 12% per year. Its revenue is up 1.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has City Holding Company Been A Good Investment?

Boasting a total shareholder return of 62% over three years, City Holding Company has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for City Holding that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.