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Tony McKim became the CEO of The First Bancorp, Inc. (NASDAQ:FNLC) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Tony McKim’s Compensation Compare With Similar Sized Companies?
Our data indicates that The First Bancorp, Inc. is worth US$288m, and total annual CEO compensation is US$736k. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$475k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$955k.
So Tony McKim is paid around the average of 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 First Bancorp has changed from year to year.
Is The First Bancorp, Inc. Growing?
On average over the last three years, The First Bancorp, Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 6.0% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. 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?
Most shareholders would probably be pleased with The First Bancorp, Inc. for providing a total return of 62% 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.
Remuneration for Tony McKim is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Bancorp (free visualization of insider trades).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.