Mark Tryniski has been the CEO of Community Bank System, Inc. (NYSE:CBU) since 2006. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Tryniski’s Compensation Compare With Similar Sized Companies?
Our data indicates that Community Bank System, Inc. is worth US$3.2b, and total annual CEO compensation is US$3.0m. (This is based on the year to December 2018). That’s below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at US$800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
Most shareholders would consider it a positive that Mark Tryniski takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Community Bank System, below.
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 21% per year (using a line of best fit). In the last year, its revenue is up 10%.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Community Bank System, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Community Bank System, Inc. for providing a total return of 68% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that Community Bank System, Inc. remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking 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. So you may want to check if insiders are buying Community Bank System shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 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.