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Does Bank of the James Financial Group, Inc.'s (NASDAQ:BOTJ) CEO Pay Compare Well With Peers?

Simply Wall St

Bob Chapman is the CEO of Bank of the James Financial Group, Inc. (NASDAQ:BOTJ). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Bank of the James Financial Group

How Does Bob Chapman's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Bank of the James Financial Group, Inc. has a market cap of US$66m, and is paying total annual CEO compensation of US$476k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$325k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$474k.

So Bob Chapman receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Bank of the James Financial Group, below.

NasdaqCM:BOTJ CEO Compensation, August 2nd 2019

Is Bank of the James Financial Group, Inc. Growing?

Bank of the James Financial Group, Inc. has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Bank of the James Financial Group, Inc. Been A Good Investment?

With a total shareholder return of 22% over three years, Bank of the James Financial Group, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Bob Chapman is paid around the same as most CEOs of similar size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bank of the James Financial Group (free visualization of insider trades).

Important note: Bank of the James Financial Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.