Key Insights

• John Marshall Bancorp to hold its Annual General Meeting on 18th of June
• Salary of US$740.0k is part of CEO Chris Bergstrom's total remuneration
• The total compensation is 34% higher than the average for the industry
• John Marshall Bancorp's three-year loss to shareholders was 5.0% while its EPS was down 46% over the past three years

John Marshall Bancorp, Inc. (NASDAQ:JMSB) has not performed well recently and CEO Chris Bergstrom will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 18th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

How Does Total Compensation For Chris Bergstrom Compare With Other Companies In The Industry?

At the time of writing, our data shows that John Marshall Bancorp, Inc. has a market capitalization of US$238m, and reported total annual CEO compensation of US$1.4m for the year to December 2023. That's a notable decrease of 28% on last year. We note that the salary of US$740.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.1m. Accordingly, our analysis reveals that John Marshall Bancorp, Inc. pays Chris Bergstrom north of the industry median. Moreover, Chris Bergstrom also holds US$1.0m worth of John Marshall Bancorp stock directly under their own name.

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. John Marshall Bancorp is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

John Marshall Bancorp, Inc.'s Growth

John Marshall Bancorp, Inc. has reduced its earnings per share by 46% a year over the last three years. It saw its revenue drop 48% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has John Marshall Bancorp, Inc. Been A Good Investment?

Given the total shareholder loss of 5.0% over three years, many shareholders in John Marshall Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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, the board will get the chance to explain the steps it plans to take to improve business performance.

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. We did our research and spotted 1 warning sign for John Marshall Bancorp that investors should look into moving forward.

Switching gears from John Marshall Bancorp, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.