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How Should Investors React To BayCom Corp's (NASDAQ:BCML) CEO Pay?

Simply Wall St

In 2017 George Guarini was appointed CEO of BayCom Corp (NASDAQ:BCML). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for BayCom

How Does George Guarini's Compensation Compare With Similar Sized Companies?

Our data indicates that BayCom Corp is worth US$171m, and total annual CEO compensation was reported as US$1.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$495k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.5m.

So George Guarini receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at BayCom, below.

NasdaqGS:BCML CEO Compensation, March 18th 2020

Is BayCom Corp Growing?

On average over the last three years, BayCom Corp has grown earnings per share (EPS) by 9.6% each year (using a line of best fit). It achieved revenue growth of 33% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.

Has BayCom Corp Been A Good Investment?

Given the total loss of 14% over three years, many shareholders in BayCom Corp are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

George Guarini is paid around what is normal for the leaders of comparable size companies.

We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. Moving away from CEO compensation for the moment, we've identified 2 warning signs for BayCom that you should be aware of before investing.

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.

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.

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. Thank you for reading.