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In 2009 Rick Cantele was appointed CEO of Salisbury Bancorp, Inc. (NASDAQ:SAL). 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. 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.
How Does Rick Cantele’s Compensation Compare With Similar Sized Companies?
Our data indicates that Salisbury Bancorp, Inc. is worth US$107m, and total annual CEO compensation is US$670k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$384k. 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$470k.
It would therefore appear that Salisbury Bancorp, Inc. pays Rick Cantele more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Salisbury Bancorp, below.
Is Salisbury Bancorp, Inc. Growing?
Salisbury Bancorp, Inc. has increased its earnings per share (EPS) by an average of 4.1% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.0% over the last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.
Has Salisbury Bancorp, Inc. Been A Good Investment?
I think that the total shareholder return of 38%, over three years, would leave most Salisbury Bancorp, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Salisbury Bancorp, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Salisbury Bancorp.
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.