Yahoo Finance Here's Why Some Shareholders May Not Be Too Generous With Colony Bankcorp, Inc.'s (NASDAQ:CBAN) CEO Compensation This Year
Key Insights
Colony Bankcorp's Annual General Meeting to take place on 16th of May
Salary of US$485.0k is part of CEO T. Fountain's total remuneration
The total compensation is 41% less than the average for the industry
Colony Bankcorp's EPS declined by 7.6% over the past three years while total shareholder loss over the past three years was 25%
The disappointing performance at Colony Bankcorp, Inc. (NASDAQ:CBAN) will make some shareholders rather disheartened. At the upcoming AGM on 16th 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. The data we gathered below shows that CEO compensation looks acceptable for now.
See our latest analysis for Colony Bankcorp
How Does Total Compensation For T. Fountain Compare With Other Companies In The Industry?
At the time of writing, our data shows that Colony Bankcorp, Inc. has a market capitalization of US$198m, and reported total annual CEO compensation of US$624k for the year to December 2023. Notably, that's a decrease of 10.0% over the year before. Notably, the salary which is US$485.0k, represents most of the total compensation being paid.
On examining similar-sized companies in the American Banks industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.1m. Accordingly, Colony Bankcorp pays its CEO under the industry median. Moreover, T. Fountain also holds US$878k worth of Colony Bankcorp stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$485k | US$485k | 78% |
Other | US$139k | US$208k | 22% |
Total Compensation | US$624k | US$693k | 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. According to our research, Colony Bankcorp has allocated a higher percentage of pay to salary in comparison to the wider industry. 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 Colony Bankcorp, Inc.'s Growth Numbers
Over the last three years, Colony Bankcorp, Inc. has shrunk its earnings per share by 7.6% per year. Its revenue is down 1.1% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Colony Bankcorp, Inc. Been A Good Investment?
Given the total shareholder loss of 25% over three years, many shareholders in Colony Bankcorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Colony Bankcorp that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
