Key Insights

• Ameris Bancorp's Annual General Meeting to take place on 6th of June
• CEO H. Proctor's total compensation includes salary of US$918.3k
• The total compensation is similar to the average for the industry
• Over the past three years, Ameris Bancorp's EPS fell by 8.2% and over the past three years, the total loss to shareholders 12%

Ameris Bancorp (NASDAQ:ABCB) has not performed well recently and CEO H. Proctor will probably need to up their game. At the upcoming AGM on 6th of June, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Comparing Ameris Bancorp's CEO Compensation With The Industry

Our data indicates that Ameris Bancorp has a market capitalization of US$3.3b, and total annual CEO compensation was reported as US$5.1m for the year to December 2023. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$918k.

On comparing similar companies from the American Banks industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$4.8m. From this we gather that H. Proctor is paid around the median for CEOs in the industry. Furthermore, H. Proctor directly owns US$18m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. In Ameris Bancorp's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Ameris Bancorp's Growth Numbers

Over the last three years, Ameris Bancorp has shrunk its earnings per share by 8.2% per year. In the last year, its revenue changed by just 0.1%.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ameris Bancorp Been A Good Investment?

With a three year total loss of 12% for the shareholders, Ameris Bancorp would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Ameris Bancorp 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.