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Temecula Valley Bancorp Inc. Message Board

  • only_idiots_drive_suvs only_idiots_drive_suvs Dec 13, 2006 2:17 PM Flag

    how does CEO justify his $2M pay package?

    Take a look at much larger banks and the CEOs make less.

    The CEO here consumes 5% of SGA by himself.

    No buyout coming anytime soon and zero creativity with management. Citi and other banks with better capitalization will clean their clocks.

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    • Now that the year end has passed we will be getting the last quqrter reports for the small banks. I have talked to the employees at several of them. Looks like a good quarter but nothing outstanding at any of them.

    • With my return on the stock over 500% over the past 5 years and earnings going up each quarter I am not going to look at the presidents pay check.
      In your posting you say there is no buyout in sight. Are you sure of this? There have been no insider trades since June.
      As a former small banker the best bank location is next door to Citibank with Wells Fargo on the other side and Bank of America across the street.

    • Yes, the CEO's compensation has been a hot topic on this board for a while now. I'm not sure that you can 100% justify it, however, the bank's historical earnings have been tremendous and the bank has been a huge success. But here is what worries me about TMCV:

      This is a real estate/construction lending bank that has a substantial percentage of their loan portfolio in speculative residential lending; not an area that you want to be too concentrated in these days. But so are a number of other community banks. What I think sets TMCV apart from their peers, is that (contrary to what you may think) the management team is more creative than what others may give them credit for. This bank has morphed into more than just a community lender. Over the course of the past 12-18 months, it has developed new products, new lines and divisions to expand it's services and geographic footprint. The bank has also increased it's core lending activity (much needed for years!) which should counter some of the real estate concentrations.

      As for the CEO's compensation....I can certainly understand your thoughts and concerns. It's quite a package for him. However, you can't argue with success and as long as the bank continues to post strong trends in revenues, earnings, ROA, ROE, etc., I'm in for the long haul