How Should Investors React To TrustCo Bank Corp NY's (NASDAQ:TRST) CEO Pay?
In 2004 Rob McCormick was appointed CEO of TrustCo Bank Corp NY (NASDAQ:TRST). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for TrustCo Bank Corp NY
How Does Rob McCormick's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that TrustCo Bank Corp NY has a market cap of US$818m, and reported total annual CEO compensation of US$2.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$975k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.5m.
So Rob McCormick receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at TrustCo Bank Corp NY has changed from year to year.
Is TrustCo Bank Corp NY Growing?
TrustCo Bank Corp NY has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 TrustCo Bank Corp NY Been A Good Investment?
TrustCo Bank Corp NY has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Rob McCormick is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if TrustCo Bank Corp NY insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
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. Thank you for reading.
