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In 2015 Brad Scovill was appointed CEO of Citizens & Northern Corporation (NASDAQ:CZNC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Brad Scovill’s Compensation Compare With Similar Sized Companies?
According to our data, Citizens & Northern Corporation has a market capitalization of US$339m, and pays its CEO total annual compensation worth US$860k. (This figure is for the year to December 2018). We note that’s an increase of 12% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$416k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.
A first glance this seems like a real positive for shareholders, since Brad Scovill is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Citizens & Northern, below.
Is Citizens & Northern Corporation Growing?
Over the last three years Citizens & Northern Corporation has grown its earnings per share (EPS) by an average of 9.8% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Citizens & Northern Corporation Been A Good Investment?
I think that the total shareholder return of 43%, over three years, would leave most Citizens & Northern Corporation shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Citizens & Northern Corporation is currently paying its CEO below what is normal for companies of its size.
Brad Scovill is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying Citizens & Northern shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.