Most Shareholders Will Probably Agree With The First Bancorp, Inc.'s (NASDAQ:FNLC) CEO Compensation

By
Simply Wall St
Published
April 22, 2021
NasdaqGS:FNLC

CEO Tony McKim has done a decent job of delivering relatively good performance at The First Bancorp, Inc. (NASDAQ:FNLC) 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 28 April 2021. We present our case of why we think CEO compensation looks fair.

View our latest analysis for First Bancorp

How Does Total Compensation For Tony McKim Compare With Other Companies In The Industry?

Our data indicates that The First Bancorp, Inc. has a market capitalization of US$305m, and total annual CEO compensation was reported as US$1.0m for the year to December 2020. That's a notable increase of 9.1% on last year. We note that the salary of US$575.0k makes up a sizeable portion of the total compensation received by the CEO.

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. This suggests that First Bancorp remunerates its CEO largely in line with the industry average. What's more, Tony McKim holds US$3.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$575k US$545k 55%
Other US$468k US$411k 45%
Total CompensationUS$1.0m US$956k100%

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. According to our research, First Bancorp has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NasdaqGS:FNLC CEO Compensation April 23rd 2021

A Look at The First Bancorp, Inc.'s Growth Numbers

Over the past three years, The First Bancorp, Inc. has seen its earnings per share (EPS) grow by 11% per year. In the last year, its revenue is up 9.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

The First Bancorp, Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

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).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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