Stock Analysis

A Quick Analysis On Community Bank System's (NYSE:CBU) CEO Salary

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This article will reflect on the compensation paid to Mark Tryniski who has served as CEO of Community Bank System, Inc. (NYSE:CBU) since 2006. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Community Bank System.

Check out our latest analysis for Community Bank System

Comparing Community Bank System, Inc.'s CEO Compensation With the industry

According to our data, Community Bank System, Inc. has a market capitalization of US$3.5b, and paid its CEO total annual compensation worth US$5.2m over the year to December 2019. Notably, that's an increase of 74% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$824k.

For comparison, other companies in the same industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$4.1m. So it looks like Community Bank System compensates Mark Tryniski in line with the median for the industry. What's more, Mark Tryniski holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20192018Proportion (2019)
Salary US$824k US$800k 16%
Other US$4.3m US$2.2m 84%
Total CompensationUS$5.2m US$3.0m100%

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. In Community Bank System's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NYSE:CBU CEO Compensation December 5th 2020

A Look at Community Bank System, Inc.'s Growth Numbers

Community Bank System, Inc.'s earnings per share (EPS) grew 11% per year over the last three years. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Community Bank System, Inc. Been A Good Investment?

Community Bank System, Inc. has served shareholders reasonably well, with a total return of 30% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As previously discussed, Mark is compensated close to the median for companies of its size, and which belong to the same industry. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Community Bank System you should be aware of, and 1 of them is a bit concerning.

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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