Shareholders Will Most Likely Find Bank of the James Financial Group, Inc.'s (NASDAQ:BOTJ) CEO Compensation Acceptable

Key Insights

• Bank of the James Financial Group will host its Annual General Meeting on 20th of May
• Salary of US$400.6k is part of CEO Bob Chapman's total remuneration
• Total compensation is similar to the industry average
• Bank of the James Financial Group's EPS declined by 4.4% over the past three years while total shareholder return over the past three years was 20%

Our free stock report includes 1 warning sign investors should be aware of before investing in Bank of the James Financial Group. Read for free now.

Despite positive share price growth of 20% for Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) 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 20th 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. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

View our latest analysis for Bank of the James Financial Group

Comparing Bank of the James Financial Group, Inc.'s CEO Compensation With The Industry

According to our data, Bank of the James Financial Group, Inc. has a market capitalization of US$65m, and paid its CEO total annual compensation worth US$742k over the year to December 2024. Notably, that's an increase of 31% over the year before. In particular, the salary of US$400.6k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the American Banks industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$623k. So it looks like Bank of the James Financial Group compensates Bob Chapman in line with the median for the industry. Furthermore, Bob Chapman directly owns US$1.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$401k	US$341k	54%
Other	US$341k	US$223k	46%
Total Compensation	US$742k	US$564k	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. Bank of the James Financial Group pays out 54% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Bank of the James Financial Group, Inc.'s Growth Numbers

Over the last three years, Bank of the James Financial Group, Inc. has shrunk its earnings per share by 4.4% per year. It achieved revenue growth of 4.7% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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 20% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

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. That's why we did some digging and identified 1 warning sign for Bank of the James Financial Group that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.