This Is Why Citizens & Northern Corporation's (NASDAQ:CZNC) CEO Compensation Looks Appropriate

Under the guidance of CEO Brad Scovill, Citizens & Northern Corporation (NASDAQ:CZNC) 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 22 April 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Citizens & Northern

Comparing Citizens & Northern Corporation's CEO Compensation With the industry

Our data indicates that Citizens & Northern Corporation has a market capitalization of US$357m, and total annual CEO compensation was reported as US$1.0m for the year to December 2020. Notably, that's an increase of 13% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$475k.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.1m. From this we gather that Brad Scovill is paid around the median for CEOs in the industry. Moreover, Brad Scovill also holds US$1.9m worth of Citizens & Northern stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$475k	US$437k	45%
Other	US$571k	US$489k	55%
Total Compensation	US$1.0m	US$926k	100%

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. Our data reveals that Citizens & Northern allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Citizens & Northern Corporation's Growth Numbers

Over the past three years, Citizens & Northern Corporation has seen its earnings per share (EPS) grow by 5.5% per year. Its revenue is up 20% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Citizens & Northern Corporation Been A Good Investment?

Citizens & Northern Corporation has served shareholders reasonably well, with a total return of 14% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Citizens & Northern that you should be aware of before investing.

Switching gears from Citizens & Northern, 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.

If you’re looking to trade Citizens & Northern, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.