How Should Investors React To TrustCo Bank Corp NY's (NASDAQ:TRST) CEO Pay?

Simply Wall St - finance.yahoo.com Posted 5 years ago
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Rob McCormick became the CEO of TrustCo Bank Corp NY (NASDAQ:TRST) in 2004. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for TrustCo Bank Corp NY

How Does Rob McCormick's Compensation Compare With Similar Sized Companies?

Our data indicates that TrustCo Bank Corp NY is worth US$729m, and total annual CEO compensation is US$2.5m. (This number is for the twelve months until December 2018). That's a notable increase of 14% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$975k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.

So Rob McCormick receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at TrustCo Bank Corp NY has changed over time.

NasdaqGS:TRST CEO Compensation, June 7th 2019
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Is TrustCo Bank Corp NY Growing?

Over the last three years TrustCo Bank Corp NY has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 2.8%.

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. Shareholders might be interested in this free visualization of analyst forecasts.

Has TrustCo Bank Corp NY Been A Good Investment?

TrustCo Bank Corp NY has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Rob McCormick is close enough to the median pay for a CEO of a similar sized company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling TrustCo Bank Corp NY (free visualization of insider trades).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at [email protected]. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.