Yahoo Finance It's Unlikely That The CEO Of Midland States Bancorp, Inc. (NASDAQ:MSBI) Will See A Huge Pay Rise This Year
Key Insights
Midland States Bancorp will host its Annual General Meeting on 6th of May
CEO Jeff Ludwig's total compensation includes salary of US$721.0k
The overall pay is comparable to the industry average
Midland States Bancorp's EPS grew by 16% over the past three years while total shareholder loss over the past three years was 9.9%
In the past three years, the share price of Midland States Bancorp, Inc. (NASDAQ:MSBI) 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 6th of May. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Midland States Bancorp
How Does Total Compensation For Jeff Ludwig Compare With Other Companies In The Industry?
Our data indicates that Midland States Bancorp, Inc. has a market capitalization of US$480m, and total annual CEO compensation was reported as US$1.6m for the year to December 2023. That's a notable decrease of 8.1% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$721k.
On comparing similar companies from the American Banks industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$1.4m. So it looks like Midland States Bancorp compensates Jeff Ludwig in line with the median for the industry. Moreover, Jeff Ludwig also holds US$8.0m worth of Midland States Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$721k | US$700k | 44% |
Other | US$913k | US$1.1m | 56% |
Total Compensation | US$1.6m | US$1.8m | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Our data reveals that Midland States Bancorp allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Midland States Bancorp, Inc.'s Growth Numbers
Over the past three years, Midland States Bancorp, Inc. has seen its earnings per share (EPS) grow by 16% per year. In the last year, its revenue is down 12%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Midland States Bancorp, Inc. Been A Good Investment?
With a three year total loss of 9.9% for the shareholders, Midland States Bancorp, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
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. We've identified 1 warning sign for Midland States Bancorp that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
