How Should Investors Feel About Pathfinder Bancorp, Inc.'s (NASDAQ:PBHC) CEO Pay?

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In 2000 Tom Schneider was appointed CEO of Pathfinder Bancorp, Inc. (NASDAQ:PBHC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Pathfinder Bancorp

How Does Tom Schneider's Compensation Compare With Similar Sized Companies?

Our data indicates that Pathfinder Bancorp, Inc. is worth US$58m, and total annual CEO compensation was reported as US$551k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$360k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$496k.

That means Tom Schneider receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Pathfinder Bancorp, below.

NasdaqCM:PBHC CEO Compensation, October 9th 2019
NasdaqCM:PBHC CEO Compensation, October 9th 2019

Is Pathfinder Bancorp, Inc. Growing?

Over the last three years Pathfinder Bancorp, Inc. has grown its earnings per share (EPS) by an average of 3.7% per year (using a line of best fit). It achieved revenue growth of 7.4% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Pathfinder Bancorp, Inc. Been A Good Investment?

With a total shareholder return of 7.8% over three years, Pathfinder Bancorp, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Tom Schneider is paid around the same as most CEOs of similar size companies.

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. So you may want to check if insiders are buying Pathfinder Bancorp shares with their own money (free access).

Important note: Pathfinder Bancorp 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.

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.

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. Thank you for reading.

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