James Helt has been the CEO of ACNB Corporation (NASDAQ:ACNB) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For James Helt Compare With Other Companies In The Industry?
Our data indicates that ACNB Corporation has a market capitalization of US$196m, and total annual CEO compensation was reported as US$741k for the year to December 2019. Notably, that's an increase of 33% over the year before. We note that the salary portion, which stands at US$425.0k constitutes the majority of total compensation received by the CEO.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$941k. From this we gather that James Helt is paid around the median for CEOs in the industry. Moreover, James Helt also holds US$299k worth of ACNB stock directly under their own name.
Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. According to our research, ACNB has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
ACNB Corporation's Growth
ACNB Corporation's earnings per share (EPS) grew 7.4% per year over the last three years. In the last year, its revenue is up 9.3%.
We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has ACNB Corporation Been A Good Investment?
With a three year total loss of 14% for the shareholders, ACNB Corporation would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, ACNB pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, ACNB is suffering from adverse shareholder returns and although earnings have grown over the past three years, they have not been extraordinary. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that James deserves a raise.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for ACNB that investors should think about before committing capital to this stock.
Important note: ACNB is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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