We Think Shareholders Are Less Likely To Approve A Large Pay Rise For BayCom Corp's (NASDAQ:BCML) CEO For Now

The underwhelming share price performance of BayCom Corp (NASDAQ:BCML) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 15 June 2021. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for BayCom

How Does Total Compensation For George Guarini Compare With Other Companies In The Industry?

At the time of writing, our data shows that BayCom Corp has a market capitalization of US$199m, and reported total annual CEO compensation of US$2.2m for the year to December 2020. Notably, that's an increase of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$650k.

In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$761k. This suggests that George Guarini is paid more than the median for the industry. What's more, George Guarini holds US$4.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$650k	US$650k	29%
Other	US$1.6m	US$1.3m	71%
Total Compensation	US$2.2m	US$2.0m	100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that BayCom 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 BayCom Corp's Growth Numbers

Over the past three years, BayCom Corp has seen its earnings per share (EPS) grow by 5.5% per year. Its revenue is down 4.0% over the previous year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BayCom Corp Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in BayCom Corp are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at BayCom.

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’re looking to trade BayCom, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.