Increases to CEO Compensation Might Be Put On Hold For Now at Bank7 Corp. (NASDAQ:BSVN)

Key Insights

• Bank7 to hold its Annual General Meeting on 15th of May
• CEO Tom Travis' total compensation includes salary of US$550.0k
• The overall pay is 36% above the industry average
• Over the past three years, Bank7's EPS grew by 15% and over the past three years, the total shareholder return was 86%

Performance at Bank7 Corp. (NASDAQ:BSVN) has been reasonably good and CEO Tom Travis has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Bank7

Comparing Bank7 Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Bank7 Corp. has a market capitalization of US$275m, and reported total annual CEO compensation of US$1.4m for the year to December 2023. We note that's an increase of 16% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$550k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.1m. Hence, we can conclude that Tom Travis is remunerated higher than the industry median. Furthermore, Tom Travis directly owns US$7.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$550k	US$550k	38%
Other	US$884k	US$685k	62%
Total Compensation	US$1.4m	US$1.2m	100%

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Bank7 pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Bank7 Corp.'s Growth

Bank7 Corp. has seen its earnings per share (EPS) increase by 15% a year over the past three years. Its revenue is up 1.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bank7 Corp. Been A Good Investment?

Boasting a total shareholder return of 86% over three years, Bank7 Corp. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Bank7 that investors should be aware of in a dynamic business environment.

Switching gears from Bank7, 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. 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.