Is The First of Long Island Corporation (NASDAQ:FLIC) Excessively Paying Its CEO?

In 2003 Michael Vittorio was appointed CEO of The First of Long Island Corporation (NASDAQ:FLIC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

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How Does Michael Vittorio’s Compensation Compare With Similar Sized Companies?

Our data indicates that The First of Long Island Corporation is worth US$542m, and total annual CEO compensation is US$1.7m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$613k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.6m.

So Michael Vittorio receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.

The graphic below shows how CEO compensation at First of Long Island has changed from year to year.

NasdaqCM:FLIC CEO Compensation January 11th 19
NasdaqCM:FLIC CEO Compensation January 11th 19

Is The First of Long Island Corporation Growing?

The First of Long Island Corporation has increased its earnings per share (EPS) by an average of 8.5% a year, over the last three years (using a line of best fit). Its revenue is up 2.0% over last year.

I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.

Has The First of Long Island Corporation Been A Good Investment?

The First of Long Island Corporation has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

Michael Vittorio is paid around the same as most CEOs of similar size companies.

We see room for improved growth, as well as fairly unremarkable returns over the last three years. While the CEO may not be underpaid, we don’t think the pay is too generous either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First of Long Island.

Important note: First of Long Island 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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.