It's Probably Less Likely That Catalyst Bancorp, Inc.'s (NASDAQ:CLST) CEO Will See A Huge Pay Rise This Year

Key Insights

• Catalyst Bancorp to hold its Annual General Meeting on 20th of May
• Salary of US$300.0k is part of CEO Joe Zanco's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Catalyst Bancorp's EPS grew by 16% and over the past three years, the total loss to shareholders 5.5%

Our free stock report includes 1 warning sign investors should be aware of before investing in Catalyst Bancorp. Read for free now.

In the past three years, shareholders of Catalyst Bancorp, Inc. (NASDAQ:CLST) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. 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 Catalyst Bancorp

Comparing Catalyst Bancorp, Inc.'s CEO Compensation With The Industry

According to our data, Catalyst Bancorp, Inc. has a market capitalization of US$49m, and paid its CEO total annual compensation worth US$437k over the year to December 2024. That's just a smallish increase of 8.0% on last year. Notably, the salary which is US$300.0k, represents most of the total compensation being paid.

For comparison, other companies in the American Banks industry with market capitalizations below US$200m, reported a median total CEO compensation of US$623k. From this we gather that Joe Zanco is paid around the median for CEOs in the industry. Moreover, Joe Zanco also holds US$718k worth of Catalyst Bancorp stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$300k	US$300k	69%
Other	US$137k	US$105k	31%
Total Compensation	US$437k	US$405k	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. Catalyst Bancorp pays out 69% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Catalyst Bancorp, Inc.'s Growth Numbers

Catalyst Bancorp, Inc. has seen its earnings per share (EPS) increase by 16% a year over the past three years. In the last year, its revenue is up 192%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Catalyst Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 5.5% over three years, some Catalyst Bancorp, Inc. investors would surely be feeling negative emotions. 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. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Catalyst Bancorp that investors should be aware of in a dynamic business environment.

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.