Does Bar Harbor Bankshares' (NYSEMKT:BHB) CEO Salary Compare Well With Industry Peers?

Curtis Simard became the CEO of Bar Harbor Bankshares (NYSEMKT:BHB) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Bar Harbor Bankshares pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Bar Harbor Bankshares

Comparing Bar Harbor Bankshares' CEO Compensation With the industry

Our data indicates that Bar Harbor Bankshares has a market capitalization of US$332m, and total annual CEO compensation was reported as US$1.3m for the year to December 2019. That's just a smallish increase of 7.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$635k.

On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$1.1m. This suggests that Bar Harbor Bankshares remunerates its CEO largely in line with the industry average. What's more, Curtis Simard holds US$1.0m worth of shares in the company in their own name.

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. According to our research, Bar Harbor Bankshares has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Bar Harbor Bankshares' Growth Numbers

Bar Harbor Bankshares has seen its earnings per share (EPS) increase by 5.0% a year over the past three years. In the last year, its revenue is up 13%.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Bar Harbor Bankshares Been A Good Investment?

Since shareholders would have lost about 12% over three years, some Bar Harbor Bankshares investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Bar Harbor Bankshares pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, Bar Harbor Bankshares is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.

Whatever your view on compensation, you might want to check if insiders are buying or selling Bar Harbor Bankshares shares (free trial).

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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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