Key Insights
- Chemung Financial to hold its Annual General Meeting on 4th of June
- Total pay for CEO Anders Tomson includes US$655.4k salary
- Total compensation is similar to the industry average
- Chemung Financial's EPS grew by 2.1% over the past three years while total shareholder return over the past three years was 2.9%
CEO Anders Tomson has done a decent job of delivering relatively good performance at Chemung Financial Corporation (NASDAQ:CHMG) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 4th of June. Here is our take on why we think the CEO compensation looks appropriate.
Comparing Chemung Financial Corporation's CEO Compensation With The Industry
Our data indicates that Chemung Financial Corporation has a market capitalization of US$208m, and total annual CEO compensation was reported as US$1.3m for the year to December 2023. We note that's an increase of 9.0% above last year. In particular, the salary of US$655.4k, makes up a fairly large portion of the total compensation being paid to the CEO.
In comparison with other companies in the American Banks industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.1m. From this we gather that Anders Tomson is paid around the median for CEOs in the industry. Moreover, Anders Tomson also holds US$2.4m worth of Chemung Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | US$655k | US$600k | 51% |
| Other | US$628k | US$577k | 49% |
| Total Compensation | US$1.3m | US$1.2m | 100% |
Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. It's interesting to note that Chemung Financial pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Chemung Financial Corporation's Growth Numbers
Chemung Financial Corporation has seen its earnings per share (EPS) increase by 2.1% a year over the past three years. It saw its revenue drop 1.4% over the last year.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Chemung Financial Corporation Been A Good Investment?
Chemung Financial Corporation has not done too badly by shareholders, with a total return of 2.9%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
So you may want to check if insiders are buying Chemung Financial shares with their own money (free access).
Switching gears from Chemung Financial, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.