Brad Scovill became the CEO of Citizens & Northern Corporation (NASDAQ:CZNC) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Citizens & Northern Corporation's CEO Compensation With the industry
According to our data, Citizens & Northern Corporation has a market capitalization of US$279m, and paid its CEO total annual compensation worth US$926k over the year to December 2019. That's a modest increase of 7.7% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$437k.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$900k. This suggests that Citizens & Northern remunerates its CEO largely in line with the industry average. What's more, Brad Scovill holds US$1.1m worth of shares in the company in their own name.
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Our data reveals that Citizens & Northern allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Citizens & Northern Corporation's Growth
Citizens & Northern Corporation has seen its earnings per share (EPS) increase by 4.2% a year over the past three years. Its revenue is up 8.3% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Citizens & Northern Corporation Been A Good Investment?
With a three year total loss of 9.9% for the shareholders, Citizens & Northern Corporation would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, Citizens & Northern Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Brad deserves a raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Citizens & Northern that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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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