Tom Schneider has been the CEO of Pathfinder Bancorp, Inc. (NASDAQ:PBHC) since 2000, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Pathfinder Bancorp pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Pathfinder Bancorp, Inc.'s CEO Compensation With the industry
According to our data, Pathfinder Bancorp, Inc. has a market capitalization of US$53m, and paid its CEO total annual compensation worth US$552k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$360.4k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$631k. This suggests that Pathfinder Bancorp remunerates its CEO largely in line with the industry average. Furthermore, Tom Schneider directly owns US$668k worth of shares in the company.
Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. According to our research, Pathfinder Bancorp has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Pathfinder Bancorp, Inc.'s Growth
Over the past three years, Pathfinder Bancorp, Inc. has seen its earnings per share (EPS) grow by 10% per year. In the last year, its revenue is up 13%.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Pathfinder Bancorp, Inc. Been A Good Investment?
With a three year total loss of 22% for the shareholders, Pathfinder Bancorp, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
As we noted earlier, Pathfinder Bancorp pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Pathfinder Bancorp that investors should be aware of in a dynamic business environment.
Important note: Pathfinder Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.