Yahoo Finance First Seacoast Bancorp, Inc.'s (NASDAQ:FSEA) CEO Will Probably Struggle To See A Pay Rise This Year
Key Insights
First Seacoast Bancorp's Annual General Meeting to take place on 30th of May
Salary of US$335.5k is part of CEO Jim Brannen's total remuneration
The total compensation is 41% less than the average for the industry
First Seacoast Bancorp's EPS declined by 129% over the past three years while total shareholder loss over the past three years was 22%
The disappointing performance at First Seacoast Bancorp, Inc. (NASDAQ:FSEA) will make some shareholders rather disheartened. At the upcoming AGM on 30th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
Check out our latest analysis for First Seacoast Bancorp
How Does Total Compensation For Jim Brannen Compare With Other Companies In The Industry?
According to our data, First Seacoast Bancorp, Inc. has a market capitalization of US$44m, and paid its CEO total annual compensation worth US$378k over the year to December 2023. That's a fairly small increase of 7.3% over the previous year. Notably, the salary which is US$335.5k, represents most of the total compensation being paid.
For comparison, other companies in the American Banks industry with market capitalizations below US$200m, reported a median total CEO compensation of US$639k. This suggests that Jim Brannen is paid below the industry median. What's more, Jim Brannen holds US$281k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$336k | US$305k | 89% |
Other | US$42k | US$47k | 11% |
Total Compensation | US$378k | US$352k | 100% |
Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. First Seacoast Bancorp pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. 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 First Seacoast Bancorp, Inc.'s Growth Numbers
Over the last three years, First Seacoast Bancorp, Inc. has shrunk its earnings per share by 129% per year. Its revenue is down 49% over the previous year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has First Seacoast Bancorp, Inc. Been A Good Investment?
Since shareholders would have lost about 22% over three years, some First Seacoast Bancorp, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is significant) in First Seacoast Bancorp we think you should know about.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
