Is Orrstown Financial Services Inc’s (NASDAQ:ORRF) CEO Paid At A Competitive Rate?

Tom Quinn became the CEO of Orrstown Financial Services Inc (NASDAQ:ORRF) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

Check out our latest analysis for Orrstown Financial Services

How Does Tom Quinn’s Compensation Compare With Similar Sized Companies?

Our data indicates that Orrstown Financial Services Inc is worth US$192m, and total annual CEO compensation is US$1m. That’s a notable increase of 32% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$919k.

So Tom Quinn is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Orrstown Financial Services, below.

NasdaqCM:ORRF CEO Compensation November 6th 18
NasdaqCM:ORRF CEO Compensation November 6th 18

Is Orrstown Financial Services Inc Growing?

On average over the last three years, Orrstown Financial Services Inc has shrunk earnings per share by 11% each year. In the last year, its revenue is up 12%.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Orrstown Financial Services Inc Been A Good Investment?

Orrstown Financial Services Inc has served shareholders reasonably well, with a total return of 18% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Tom Quinn is paid around what is normal the leaders of comparable size companies.

We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We doubt shareholders are particularly happy to see that the CEO compensation increased on last year. We wouldn’t say the CEO pay is too high, but we’d venture the company should look to improve its business metrics (and share price) before paying any more. So you may want to check if insiders are buying Orrstown Financial Services Inc shares with their own money (free access).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

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.