Yahoo Finance It Looks Like LCNB Corp.'s (NASDAQ:LCNB) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
LCNB to hold its Annual General Meeting on 22nd of April
Total pay for CEO Eric Meilstrup includes US$431.0k salary
The overall pay is comparable to the industry average
Over the past three years, LCNB's EPS fell by 15% and over the past three years, the total loss to shareholders 9.3%
LCNB Corp. (NASDAQ:LCNB) has not performed well recently and CEO Eric Meilstrup will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 22nd of April. 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.
Check out our latest analysis for LCNB
Comparing LCNB Corp.'s CEO Compensation With The Industry
According to our data, LCNB Corp. has a market capitalization of US$186m, and paid its CEO total annual compensation worth US$833k over the year to December 2023. Notably, that's an increase of 41% over the year before. We note that the salary of US$431.0k makes up a sizeable portion of the total compensation received by the CEO.
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. From this we gather that Eric Meilstrup is paid around the median for CEOs in the industry. Moreover, Eric Meilstrup also holds US$542k worth of LCNB stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$431k | US$395k | 52% |
Other | US$402k | US$194k | 48% |
Total Compensation | US$833k | US$589k | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. It's interesting to note that LCNB pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
LCNB Corp.'s Growth
LCNB Corp. has reduced its earnings per share by 15% a year over the last three years. In the last year, its revenue is down 7.2%.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 LCNB Corp. Been A Good Investment?
Since shareholders would have lost about 9.3% over three years, some LCNB Corp. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for LCNB that investors should think about before committing capital to this stock.
Important note: LCNB 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.
