Is Bank of the James Financial Group, Inc.’s (NASDAQ:BOTJ) CEO Salary Justified?

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The CEO of Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) is Bob Chapman. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Bank of the James Financial Group

How Does Bob Chapman’s Compensation Compare With Similar Sized Companies?

According to our data, Bank of the James Financial Group, Inc. has a market capitalization of US$64m, and pays its CEO total annual compensation worth US$476k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$325k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$463k.

So Bob Chapman 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, below, how CEO compensation at Bank of the James Financial Group has changed over time.

NasdaqCM:BOTJ CEO Compensation, July 10th 2019
NasdaqCM:BOTJ CEO Compensation, July 10th 2019

Is Bank of the James Financial Group, Inc. Growing?

Over the last three years Bank of the James Financial Group, Inc. has grown its earnings per share (EPS) by an average of 8.7% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.

Has Bank of the James Financial Group, Inc. Been A Good Investment?

Bank of the James Financial Group, Inc. has served shareholders reasonably well, with a total return of 23% over three years. 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…

Remuneration for Bob Chapman is close enough to the median pay for a CEO of a similar sized company .

The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. While the CEO may not be underpaid, we don’t think the pay is too generous either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bank of the James Financial Group.

If you want to buy a stock that is better than Bank of the James Financial Group, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.