Financial Institutions, Inc. (NASDAQ: FISI) CEO is unlikely to see a huge pay rise this year


Under the leadership of CEO Marty Birmingham, Financial Institutions, Inc. (NASDAQ: FISI) has done relatively well recently. This is something shareholders will keep in mind when voting on company resolutions such as executive compensation at the next general meeting on June 16, 2021. However, some shareholders will still be wary of paying. the CEO excessively.

Check out our latest analysis for financial institutions

How does Marty Birmingham’s total compensation compare to other companies in the industry?

Our data indicates that Financial Institutions, Inc. has a market capitalization of US $ 495 million and that the CEO’s total annual compensation was reported at US $ 1.5 million for the year ending December 2020. It s This includes an increase of 9.6% over the previous year. While this analysis focuses on total compensation, it should be recognized that the salary portion is lower, valued at US $ 620,000.

Looking at similar-sized companies in the industry with market capitalizations between US $ 200 million and US $ 800 million, we found that the median total compensation for CEOs in this group was US $ 1.1 million. Therefore, we can conclude that Marty Birmingham is better paid than the industry median. Additionally, Marty Birmingham owns $ 3.5 million in company stock directly, which means they are deeply invested in the success of the business.

Component 2020 2019 Proportion (2020)
Salary US $ 620,000 US $ 575,000 43%
Other US $ 839,000 US $ 757,000 57%
Total compensation 1.5 million US dollars US $ 1.3 million 100%

At the industry level, approximately 43% of total compensation is salary and 57% is other compensation. There is no significant difference between financial institutions and the market at large, in terms of the distribution of salaries in total compensation. It is important to note that an inclination towards non-salary compensation suggests that total compensation is linked to the performance of the company.

NasdaqGS: Compensation of the CEO of FISI June 10, 2021

A look at the growth numbers from Financial Institutions, Inc.

Over the past three years, Financial Institutions, Inc. has seen its earnings per share (EPS) increase by 18% per year. Its turnover is up 18% compared to last year.

Overall, this is a positive result for shareholders, which shows that the company has improved in recent years. It’s really positive to see this kind of revenue growth in just one year. It suggests a healthy and growing business. Historical performance can sometimes be a good indicator of what happens next, but if you want to take a look at the future of the business, this might be of interest to you. free viewing analyst forecasts.

Was Financial Institutions, Inc. a good investment?

Financial Institutions, Inc. generated a total shareholder return of 7.8% over three years, so most shareholders wouldn’t be too disappointed. Although there is always room to improve. In light of this, investors will likely want to see an improvement in their returns before they feel generous about increasing CEO compensation.

To conclude…

The company’s decent performance could have made most shareholders happy, perhaps making CEO compensation the least of the concerns to be discussed at the next AGM. Still, not all shareholders might be in favor of a CEO salary hike, given that they are already paid more than the industry.

While paying attention to CEO compensation is important, investors should consider other parts of the business as well. We have identified 1 warning sign for financial institutions which investors should be aware of in a dynamic business environment.

Switch gears with financial institutions, if you are looking for a flawless balance sheet and premium returns, this free List of high yield, low leverage companies is a great place to look.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St does not have any position in the mentioned stocks.
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