Is Pathfinder Bancorp, Inc. (NASDAQ:PBHC) Excessively Paying Its CEO?

Tom Schneider has been the CEO of Pathfinder Bancorp, Inc. (NASDAQ:PBHC) since 2000. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Pathfinder Bancorp

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

At the time of writing our data says that Pathfinder Bancorp, Inc. has a market cap of US$57m, and is paying total annual CEO compensation of US$551k. (This number is for the twelve months until December 2018). That’s a fairly small increase of 3.0% on year before. We think total compensation is more important but we note that the CEO salary is lower, at US$360k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$434k.

So Tom Schneider is paid around the average of 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.

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

NasdaqCM:PBHC CEO Compensation, April 23rd 2019
NasdaqCM:PBHC CEO Compensation, April 23rd 2019

Is Pathfinder Bancorp, Inc. Growing?

On average over the last three years, Pathfinder Bancorp, Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). It achieved revenue growth of 10% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Pathfinder Bancorp, Inc. Been A Good Investment?

Pathfinder Bancorp, Inc. has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

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

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Pathfinder Bancorp insiders are buying or selling shares.

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.

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.