Skip Hageboeck became the CEO of City Holding Company (NASDAQ:CHCO) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for City Holding

How Does Skip Hageboeck's Compensation Compare With Similar Sized Companies?

Our data indicates that City Holding Company is worth US$958m, and total annual CEO compensation was reported as US$1.6m for the year to December 2019. Notably, that's an increase of 17% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$637k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$3.2m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. So it seems like there isn't a significant difference between City Holding and the broader market, in terms of salary allocation in the overall compensation package.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see a visual representation of the CEO compensation at City Holding, below.

Is City Holding Company Growing?

City Holding Company has seen earnings per share (EPS) move positively by an average of 16% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 14%.

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. It could be important to check this free visual depiction of what analysts expect for the future.

Has City Holding Company Been A Good Investment?

With a total shareholder return of 1.3% over three years, City Holding Company has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

City Holding Company is currently paying its CEO below what is normal for companies of its size.

Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Skip Hageboeck is overcompensated. It's good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. Taking a breather from CEO compensation, we've spotted 2 warning signs for City Holding (of which 1 shouldn't be ignored!) you should know about in order to have a holistic understanding of the stock.

Important note: City Holding may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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. Thank you for reading.