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Shareholders will probably not be too impressed with the underwhelming results at Auburn National Bancorporation, Inc. (NASDAQ:AUBN) recently. At the upcoming AGM on 11 May 2021, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Auburn National Bancorporation
How Does Total Compensation For Bob Dumas Compare With Other Companies In The Industry?
Our data indicates that Auburn National Bancorporation, Inc. has a market capitalization of US$126m, and total annual CEO compensation was reported as US$420k for the year to December 2020. That's a notable decrease of 12% on last year. Notably, the salary which is US$335.1k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$574k. So it looks like Auburn National Bancorporation compensates Bob Dumas in line with the median for the industry. What's more, Bob Dumas holds US$1.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$335k | US$329k | 80% |
| Other | US$85k | US$149k | 20% |
| Total Compensation | US$420k | US$477k | 100% |
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, Auburn National Bancorporation 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.
A Look at Auburn National Bancorporation, Inc.'s Growth Numbers
Over the last three years, Auburn National Bancorporation, Inc. has shrunk its earnings per share by 1.4% per year. It saw its revenue drop 1.3% over the last year.
The lack of EPS growth is certainly uninspiring. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.