Yahoo Finance Here's Why Shareholders Should Examine Ameris Bancorp's (NASDAQ:ABCB) CEO Compensation Package More Closely
Key Insights
Ameris Bancorp to hold its Annual General Meeting on 6th of June
CEO H. Proctor's total compensation includes salary of US$918.3k
Total compensation is similar to the industry average
Over the past three years, Ameris Bancorp's EPS fell by 8.2% and over the past three years, the total loss to shareholders 12%
Ameris Bancorp (NASDAQ:ABCB) has not performed well recently and CEO H. Proctor will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 6th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Ameris Bancorp
How Does Total Compensation For H. Proctor Compare With Other Companies In The Industry?
At the time of writing, our data shows that Ameris Bancorp has a market capitalization of US$3.3b, and reported total annual CEO compensation of US$5.1m for the year to December 2023. Notably, that's an increase of 16% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$918k.
On examining similar-sized companies in the American Banks industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$4.8m. This suggests that Ameris Bancorp remunerates its CEO largely in line with the industry average. Furthermore, H. Proctor directly owns US$18m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$918k | US$879k | 18% |
Other | US$4.2m | US$3.5m | 82% |
Total Compensation | US$5.1m | US$4.4m | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. In Ameris Bancorp's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Ameris Bancorp's Growth Numbers
Over the last three years, Ameris Bancorp has shrunk its earnings per share by 8.2% per year. Revenue was pretty flat on last year.
Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Ameris Bancorp Been A Good Investment?
With a three year total loss of 12% for the shareholders, Ameris Bancorp would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Ameris Bancorp that investors should look into moving forward.
Important note: Ameris Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
