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In 2005 Skip Hageboeck was appointed CEO of City Holding Company (NASDAQ:CHCO). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for City Holding
How Does Skip Hageboeck's Compensation Compare With Similar Sized Companies?
According to our data, City Holding Company has a market capitalization of US$1.3b, and pays its CEO total annual compensation worth US$1.3m. (This number is for the twelve months until December 2018). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$619k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.
A first glance this seems like a real positive for shareholders, since Skip Hageboeck is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at City Holding has changed over time.
Is City Holding Company Growing?
City Holding Company has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). It achieved revenue growth of 14% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has City Holding Company Been A Good Investment?
Boasting a total shareholder return of 70% over three years, City Holding Company has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It appears that City Holding Company remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Skip Hageboeck deserves a raise!