Rick Cantele became the CEO of Salisbury Bancorp, Inc. (NASDAQ:SAL) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Rick Cantele’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Salisbury Bancorp, Inc. has a market cap of US$113m, and is paying total annual CEO compensation of US$607k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$375k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$426k.
Thus we can conclude that Rick Cantele receives more in total compensation than the median of a group of companies in the same market, and of similar size to Salisbury Bancorp, Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Salisbury Bancorp, below.
Is Salisbury Bancorp, Inc. Growing?
Over the last three years Salisbury Bancorp, Inc. has shrunk its earnings per share by an average of 2.0% per year (measured with a line of best fit). It achieved revenue growth of 4.0% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
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.Earnings per share have not grown in three years, and the revenue growth fails to impress us.
On the other hand, returns have been good, so the company is doing something right. So on this analysis we’d stop short of criticizing the level of CEO compensation. So you may want to check if insiders are buying Salisbury Bancorp shares with their own money (free access).
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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