It's Unlikely That Financial Institutions, Inc.'s (NASDAQ:FISI) CEO Will See A Huge Pay Rise This Year

Under the guidance of CEO Marty Birmingham, Financial Institutions, Inc. (NASDAQ:FISI) 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 16 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Financial Institutions

How Does Total Compensation For Marty Birmingham Compare With Other Companies In The Industry?

Our data indicates that Financial Institutions, Inc. has a market capitalization of US$495m, and total annual CEO compensation was reported as US$1.5m for the year to December 2020. Notably, that's an increase of 9.6% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$620k.

On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.1m. Hence, we can conclude that Marty Birmingham is remunerated higher than the industry median. Furthermore, Marty Birmingham directly owns US$3.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$620k	US$575k	43%
Other	US$839k	US$757k	57%
Total Compensation	US$1.5m	US$1.3m	100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. There isn't a significant difference between Financial Institutions and the broader market, in terms of salary allocation in the overall compensation package. 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 Financial Institutions, Inc.'s Growth Numbers

Over the past three years, Financial Institutions, Inc. has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Financial Institutions, Inc. Been A Good Investment?

Financial Institutions, Inc. has generated a total shareholder return of 7.8% 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Financial Institutions that investors should be aware of in a dynamic business environment.

Switching gears from Financial Institutions, 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. 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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