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Performance at Bank of Commerce Holdings (NASDAQ:BOCH) has been reasonably good and CEO Randy Eslick has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18 May 2021. We present our case of why we think CEO compensation looks fair.
How Does Total Compensation For Randy Eslick Compare With Other Companies In The Industry?
Our data indicates that Bank of Commerce Holdings has a market capitalization of US$226m, and total annual CEO compensation was reported as US$828k for the year to December 2020. That's a notable increase of 18% on last year. In particular, the salary of US$490.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$761k. This suggests that Bank of Commerce Holdings remunerates its CEO largely in line with the industry average. Moreover, Randy Eslick also holds US$824k worth of Bank of Commerce Holdings stock directly under their own name.
On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. Bank of Commerce Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Bank of Commerce Holdings' Growth
Bank of Commerce Holdings's earnings per share (EPS) grew 28% per year over the last three years. It achieved revenue growth of 7.1% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Bank of Commerce Holdings Been A Good Investment?
With a total shareholder return of 27% over three years, Bank of Commerce Holdings shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Bank of Commerce Holdings you should be aware of, and 1 of them doesn't sit too well with us.
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.
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. 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.
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