ACNB Corporation's (NASDAQ:ACNB) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• ACNB will host its Annual General Meeting on 6th of May
• Total pay for CEO Jim Helt includes US$565.5k salary
• Total compensation is similar to the industry average
• ACNB's EPS declined by 8.7% over the past three years while total shareholder return over the past three years was 37%

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Despite strong share price growth of 37% for ACNB Corporation (NASDAQ:ACNB) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 6th of May. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for ACNB

How Does Total Compensation For Jim Helt Compare With Other Companies In The Industry?

At the time of writing, our data shows that ACNB Corporation has a market capitalization of US$437m, and reported total annual CEO compensation of US$1.6m for the year to December 2024. That's just a smallish increase of 3.0% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$565k.

On examining similar-sized companies in the American Banks industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.4m. So it looks like ACNB compensates Jim Helt in line with the median for the industry. Furthermore, Jim Helt directly owns US$1.7m worth of shares in the company.

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that ACNB allocates a smaller portion of compensation to salary 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 ACNB Corporation's Growth Numbers

Over the last three years, ACNB Corporation has shrunk its earnings per share by 8.7% per year. In the last year, its revenue is up 8.7%.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ACNB Corporation Been A Good Investment?

We think that the total shareholder return of 37%, over three years, would leave most ACNB Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for ACNB that investors should be aware of in a dynamic business environment.

Important note: ACNB is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.