How Should Investors Feel About The First Bancorp, Inc.’s (NASDAQ:FNLC) CEO Pay?

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Tony McKim became the CEO of The First Bancorp, Inc. (NASDAQ:FNLC) in 2015. 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.

See our latest analysis for First Bancorp

How Does Tony McKim’s Compensation Compare With Similar Sized Companies?

Our data indicates that The First Bancorp, Inc. is worth US$281m, and total annual CEO compensation is US$858k. (This figure is for the year to December 2018). We note that’s an increase of 17% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$520k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.

So Tony McKim is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at First Bancorp, below.

NasdaqGS:FNLC CEO Compensation, May 28th 2019
NasdaqGS:FNLC CEO Compensation, May 28th 2019

Is The First Bancorp, Inc. Growing?

Over the last three years The First Bancorp, Inc. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). Its revenue is up 4.8% over last year.

This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has The First Bancorp, Inc. Been A Good Investment?

Boasting a total shareholder return of 44% over three years, The First Bancorp, Inc. has done well by shareholders. 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.

In Summary…

Tony McKim is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider 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).

Important note: First Bancorp 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.