Mark Tryniski has been the CEO of Community Bank System, Inc. (NYSE:CBU) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Community Bank System
How Does Mark Tryniski’s Compensation Compare With Similar Sized Companies?
According to our data, Community Bank System, Inc. has a market capitalization of US$3.5b, and paid its CEO total annual compensation worth US$3.0m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$800k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
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.
The graphic below shows how CEO compensation at Community Bank System has changed from year to year.
NYSE:CBU CEO Compensation, February 5th 2020
Is Community Bank System, Inc. Growing?
Community Bank System, Inc. has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.2% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Community Bank System, Inc. Been A Good Investment?
Community Bank System, Inc. has served shareholders reasonably well, with a total return of 25% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
It looks like Community Bank System, Inc. pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn’t mean that Mark Tryniski is paid too much. It’s good to see reasonable payment of the CEO, even while the business improves. But it would be nice if insiders were also buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Community Bank System.
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.
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