Yahoo Finance Is The First Bancorp, Inc. (NASDAQ:FNLC) Overpaying Its CEO?
Tony McKim became the CEO of The First Bancorp, Inc. (NASDAQ:FNLC) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for First Bancorp
How Does Tony McKim's Compensation Compare With Similar Sized Companies?
According to our data, The First Bancorp, Inc. has a market capitalization of US$216m, and paid its CEO total annual compensation worth US$956k over the year to December 2019. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$545k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.4m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. It's interesting to note that First Bancorp pays out a greater portion of remuneration through salary, in comparison to the wider industry.
Most shareholders would consider it a positive that Tony McKim 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. The graphic below shows how CEO compensation at First Bancorp has changed from year to year.
Is The First Bancorp, Inc. Growing?
Over the last three years The First Bancorp, Inc. has seen earnings per share (EPS) move in a positive direction by an average of 13% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.
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. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has The First Bancorp, Inc. Been A Good Investment?
With a three year total loss of 12%, The First Bancorp, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like The First Bancorp, 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. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we don't think, Tony McKim is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Moving away from CEO compensation for the moment, we've identified 1 warning sign for First Bancorp that you should be aware of before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
