Is Community Bank System, Inc.’s (NYSE:CBU) CEO Pay Fair?

Mark Tryniski became the CEO of Community Bank System, Inc. (NYSE:CBU) in 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

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How Does Mark Tryniski’s Compensation Compare With Similar Sized Companies?

According to our data, Community Bank System, Inc. has a market capitalization of US$3.1b, and pays its CEO total annual compensation worth US$3.1m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$751k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$5.1m.

Most shareholders would consider it a positive that Mark Tryniski takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business. So this free report on the analyst consensus forecasts could help you make a master move on this stock.

You can see a visual representation of the CEO compensation at Community Bank System, below.

NYSE:CBU CEO Compensation January 18th 19
NYSE:CBU CEO Compensation January 18th 19

Is Community Bank System, Inc. Growing?

Over the last three years Community Bank System, Inc. has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). Its revenue is up 16% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

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

I think that the total shareholder return of 84%, over three years, would leave most Community Bank System, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

It looks like Community Bank System, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Mark Tryniski deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Community Bank System (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.