It's Unlikely That The CEO Of Bank of Marin Bancorp (NASDAQ:BMRC) Will See A Huge Pay Rise This Year

In the past three years, the share price of Bank of Marin Bancorp (NASDAQ:BMRC) has struggled to grow and now shareholders are sitting on a loss. 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 29 June 2021. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Bank of Marin Bancorp

Comparing Bank of Marin Bancorp's CEO Compensation With the industry

Our data indicates that Bank of Marin Bancorp has a market capitalization of US$417m, and total annual CEO compensation was reported as US$1.1m for the year to December 2020. That's a slight decrease of 3.2% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$489k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.1m. From this we gather that Russ Colombo is paid around the median for CEOs in the industry. What's more, Russ Colombo holds US$2.4m 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$489k	US$478k	43%
Other	US$648k	US$697k	57%
Total Compensation	US$1.1m	US$1.2m	100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Our data reveals that Bank of Marin Bancorp allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Bank of Marin Bancorp's Growth Numbers

Over the past three years, Bank of Marin Bancorp has seen its earnings per share (EPS) grow by 19% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bank of Marin Bancorp Been A Good Investment?

With a three year total loss of 18% for the shareholders, Bank of Marin Bancorp would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.

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 Bank of Marin Bancorp that investors should look into moving forward.

Switching gears from Bank of Marin 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. 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.
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