Craig Best has been the CEO of Peoples Financial Services Corp. (NASDAQ:PFIS) since 2013. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Craig Best's Compensation Compare With Similar Sized Companies?
According to our data, Peoples Financial Services Corp. has a market capitalization of US$337m, and paid its CEO total annual compensation worth US$918k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$425k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.
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 Peoples Financial Services, below.
Is Peoples Financial Services Corp. Growing?
Over the last three years Peoples Financial Services Corp. has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). It achieved revenue growth of 7.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Peoples Financial Services Corp. Been A Good Investment?
Peoples Financial Services Corp. has served shareholders reasonably well, with a total return of 24% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
It looks like Peoples Financial Services Corp. pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Craig Best is paid too much. It's great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Peoples Financial Services shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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.