Brad Scovill has been the CEO of Citizens & Northern Corporation (NASDAQ:CZNC) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Brad Scovill's Compensation Compare With Similar Sized Companies?
Our data indicates that Citizens & Northern Corporation is worth US$354m, and total annual CEO compensation was reported as US$860k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$416k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
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. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Citizens & Northern has changed over time.
Is Citizens & Northern Corporation Growing?
Citizens & Northern Corporation has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Citizens & Northern Corporation Been A Good Investment?
Boasting a total shareholder return of 37% over three years, Citizens & Northern Corporation has done well by shareholders. 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.
It appears that Citizens & Northern Corporation remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Brad Scovill deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Citizens & Northern.
Important note: Citizens & Northern may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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