Should You Worry About Plumas Bancorp's (NASDAQ:PLBC) CEO Pay Cheque?

In 2010 Andy Ryback was appointed CEO of Plumas Bancorp (NASDAQ:PLBC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Plumas Bancorp

How Does Andy Ryback's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Plumas Bancorp has a market cap of US$144m, and reported total annual CEO compensation of US$481k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$300k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$521k.

That means Andy Ryback receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Plumas Bancorp has changed over time.

Is Plumas Bancorp Growing?

Over the last three years Plumas Bancorp has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). Its revenue is up 7.9% over last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Plumas Bancorp Been A Good Investment?

Most shareholders would probably be pleased with Plumas Bancorp for providing a total return of 66% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Andy Ryback is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Plumas Bancorp insiders are buying or selling shares.

If you want to buy a stock that is better than Plumas Bancorp, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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