Yahoo Finance Here's Why First Bancorp's (NASDAQ:FBNC) CEO May Not Expect A Pay Rise This Year
Key Insights
First Bancorp to hold its Annual General Meeting on 2nd of May
CEO Richard Moore's total compensation includes salary of US$525.0k
The overall pay is 59% below the industry average
First Bancorp's three-year loss to shareholders was 21% while its EPS was down 4.6% over the past three years
Performance at First Bancorp (NASDAQ:FBNC) has not been particularly rosy recently and shareholders will likely be holding CEO Richard Moore and the board accountable for this. At the upcoming AGM on 2nd 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 Bancorp
Comparing First Bancorp's CEO Compensation With The Industry
Our data indicates that First Bancorp has a market capitalization of US$1.3b, and total annual CEO compensation was reported as US$1.2m for the year to December 2023. Notably, that's a decrease of 14% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$525k.
In comparison with other companies in the American Banks industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$3.0m. That is to say, Richard Moore is paid under the industry median. Furthermore, Richard Moore directly owns US$5.5m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$525k | US$519k | 42% |
Other | US$718k | US$928k | 58% |
Total Compensation | US$1.2m | US$1.4m | 100% |
On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. First Bancorp is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
First Bancorp's Growth
Over the last three years, First Bancorp has shrunk its earnings per share by 4.6% per year. It achieved revenue growth of 2.6% over the last year.
The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 First Bancorp Been A Good Investment?
With a three year total loss of 21% for the shareholders, First Bancorp would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid 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.
Whatever your view on compensation, you might want to check if insiders are buying or selling First Bancorp shares (free trial).
Switching gears from First Bancorp, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
