A Quick Analysis On Citizens Holding's (NASDAQ:CIZN) CEO Salary

Greg McKee has been the CEO of Citizens Holding Company (NASDAQ:CIZN) since 2003, 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.

Check out our latest analysis for Citizens Holding

How Does Total Compensation For Greg McKee Compare With Other Companies In The Industry?

Our data indicates that Citizens Holding Company has a market capitalization of US$125m, and total annual CEO compensation was reported as US$479k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at US$306.1k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$650k. From this we gather that Greg McKee is paid around the median for CEOs in the industry. What's more, Greg McKee holds US$1.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. According to our research, Citizens Holding has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Citizens Holding Company's Growth Numbers

Over the last three years, Citizens Holding Company has shrunk its earnings per share by 7.1% per year. It achieved revenue growth of 16% over the last year.

Investors would be a bit wary of companies that have lower earnings On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Citizens Holding Company Been A Good Investment?

Citizens Holding Company has not done too badly by shareholders, with a total return of 0.5%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As we touched on above, Citizens Holding Company is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But revenue growth for the company has been quite positive recently. Shareholder returns, in comparison, have not been as impressive during the same period. Additionally, shareholders would want to keep their eyes on EPS, since growth has been negative for the metric for the last three years. We wouldn't say compensation is inappropriate considering the stable performance, but shareholders might want to see some better numbers before warming to the idea of a bump.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Citizens Holding (1 is a bit concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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