Shareholders May Be Wary Of Increasing Citizens Community Bancorp, Inc.'s (NASDAQ:CZWI) CEO Compensation Package

Key Insights

• Citizens Community Bancorp's Annual General Meeting to take place on 18th of June
• Salary of US$382.0k is part of CEO Steve Bianchi's total remuneration
• The total compensation is similar to the average for the industry
• Citizens Community Bancorp's EPS declined by 2.8% over the past three years while total shareholder loss over the past three years was 14%

Citizens Community Bancorp, Inc. (NASDAQ:CZWI) has not performed well recently and CEO Steve Bianchi will probably need to up their game. At the upcoming AGM on 18th of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Citizens Community Bancorp

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

Our data indicates that Citizens Community Bancorp, Inc. has a market capitalization of US$114m, and total annual CEO compensation was reported as US$663k for the year to December 2023. That's a slight decrease of 3.8% on the prior year. In particular, the salary of US$382.0k, 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$646k. From this we gather that Steve Bianchi is paid around the median for CEOs in the industry. Moreover, Steve Bianchi also holds US$1.3m worth of Citizens Community Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$382k	US$367k	58%
Other	US$281k	US$323k	42%
Total Compensation	US$663k	US$689k	100%

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. According to our research, Citizens Community Bancorp has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Citizens Community Bancorp, Inc.'s Growth Numbers

Citizens Community Bancorp, Inc. has reduced its earnings per share by 2.8% a year over the last three years. In the last year, its revenue is down 6.9%.

Its a bit disappointing to see that the company has failed to grow its EPS. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Citizens Community Bancorp, Inc. Been A Good Investment?

With a three year total loss of 14% for the shareholders, Citizens Community Bancorp, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Citizens Community Bancorp that investors should think about before committing capital to this stock.

Switching gears from Citizens Community 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. 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.