We think Chemung Financial Corporation's (NASDAQ:CHMG) CEO May Struggle To See Much Of A Pay Rise This Year

Key Insights

• Chemung Financial's Annual General Meeting to take place on 4th of June
• CEO Anders Tomson's total compensation includes salary of US$655.4k
• The total compensation is similar to the average for the industry
• Chemung Financial's total shareholder return over the past three years was 2.9% while its EPS grew by 2.1% over the past three years

Under the guidance of CEO Anders Tomson, Chemung Financial Corporation (NASDAQ:CHMG) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 4th of June. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Chemung Financial

How Does Total Compensation For Anders Tomson Compare With Other Companies In The Industry?

Our data indicates that Chemung Financial Corporation has a market capitalization of US$208m, and total annual CEO compensation was reported as US$1.3m for the year to December 2023. Notably, that's an increase of 9.0% over the year before. We note that the salary of US$655.4k makes up a sizeable portion of the total compensation received by the CEO.

On examining similar-sized companies in the American Banks industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.1m. So it looks like Chemung Financial compensates Anders Tomson in line with the median for the industry. Furthermore, Anders Tomson directly owns US$2.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$655k	US$600k	51%
Other	US$628k	US$577k	49%
Total Compensation	US$1.3m	US$1.2m	100%

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Chemung Financial is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Chemung Financial Corporation's Growth Numbers

Chemung Financial Corporation has seen its earnings per share (EPS) increase by 2.1% a year over the past three years. In the last year, its revenue is down 1.4%.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Chemung Financial Corporation Been A Good Investment?

Chemung Financial Corporation has generated a total shareholder return of 2.9% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Chemung Financial (free visualization of insider trades).

Switching gears from Chemung Financial, 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. 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.