Yahoo Finance Our Take On American River Bankshares' (NASDAQ:AMRB) CEO Salary
This article will reflect on the compensation paid to Dave Ritchie who has served as CEO of American River Bankshares (NASDAQ:AMRB) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for American River Bankshares.
View our latest analysis for American River Bankshares
How Does Total Compensation For Dave Ritchie Compare With Other Companies In The Industry?
According to our data, American River Bankshares has a market capitalization of US$61m, and paid its CEO total annual compensation worth US$527k over the year to December 2019. We note that's a decrease of 10% compared to last year. We note that the salary portion, which stands at US$274.9k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$631k. So it looks like American River Bankshares compensates Dave Ritchie in line with the median for the industry. Moreover, Dave Ritchie also holds US$317k worth of American River Bankshares stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$275k | US$265k | 52% |
Other | US$252k | US$323k | 48% |
Total Compensation | US$527k | US$588k | 100% |
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. American River Bankshares pays out 52% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
American River Bankshares' Growth
American River Bankshares has seen its earnings per share (EPS) increase by 3.9% a year over the past three years. In the last year, its revenue is up 8.7%.
We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has American River Bankshares Been A Good Investment?
Since shareholders would have lost about 25% over three years, some American River Bankshares investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
As we noted earlier, American River Bankshares pays its CEO in line with similar-sized companies belonging to the same industry. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for American River Bankshares (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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