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Should You Be Pleased About The CEO Pay At Bank of the James Financial Group, Inc.'s (NASDAQ:BOTJ)

Simply Wall St

Bob Chapman is the CEO of Bank of the James Financial Group, Inc. (NASDAQ:BOTJ). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See 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 reported total annual CEO compensation of US$476k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$325k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$520k.

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.

The graphic below shows how CEO compensation at Bank of the James Financial Group has changed from year to year.

NasdaqCM:BOTJ CEO Compensation, January 15th 2020

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 22% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but 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 1.9% over three years, Bank of the James Financial Group, Inc. has done okay by shareholders. 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 what is normal the leaders of comparable 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).

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.