In 2015 Tony McKim was appointed CEO of The First Bancorp, Inc. (NASDAQ:FNLC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tony McKim’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The First Bancorp, Inc. has a market cap of US$295m, and is paying total annual CEO compensation of US$736k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$475k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$901k.
So Tony McKim receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at First Bancorp has changed from year to year.
Is The First Bancorp, Inc. Growing?
On average over the last three years, The First Bancorp, Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). In the last year, its revenue is up 6.0%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has The First Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 62%, over three years, would leave most The First Bancorp, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Tony McKim is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Bancorp (free visualization of insider trades).
If you want to buy a stock that is better than First Bancorp, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.