Yahoo Finance Shareholders May Not Be So Generous With CrossFirst Bankshares, Inc.'s (NASDAQ:CFB) CEO Compensation And Here's Why
Key Insights
CrossFirst Bankshares will host its Annual General Meeting on 14th of May
CEO Mike Maddox's total compensation includes salary of US$712.5k
Total compensation is similar to the industry average
Over the past three years, CrossFirst Bankshares' EPS grew by 51% and over the past three years, the total loss to shareholders 8.9%
In the past three years, the share price of CrossFirst Bankshares, Inc. (NASDAQ:CFB) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 14th of May. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for CrossFirst Bankshares
How Does Total Compensation For Mike Maddox Compare With Other Companies In The Industry?
According to our data, CrossFirst Bankshares, Inc. has a market capitalization of US$643m, and paid its CEO total annual compensation worth US$1.9m over the year to December 2023. We note that's an increase of 18% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$713k.
On examining similar-sized companies in the American Banks industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$1.9m. So it looks like CrossFirst Bankshares compensates Mike Maddox in line with the median for the industry. What's more, Mike Maddox holds US$2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$713k | US$616k | 37% |
Other | US$1.2m | US$1.0m | 63% |
Total Compensation | US$1.9m | US$1.6m | 100% |
On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. CrossFirst Bankshares pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at CrossFirst Bankshares, Inc.'s Growth Numbers
Over the past three years, CrossFirst Bankshares, Inc. has seen its earnings per share (EPS) grow by 51% per year. It achieved revenue growth of 12% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has CrossFirst Bankshares, Inc. Been A Good Investment?
With a three year total loss of 8.9% for the shareholders, CrossFirst Bankshares, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
So you may want to check if insiders are buying CrossFirst Bankshares shares with their own money (free access).
Important note: CrossFirst Bankshares 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.
