Shareholders Will Most Likely Find Enterprise Financial Services Corp's (NASDAQ:EFSC) CEO Compensation Acceptable

Key Insights

• Enterprise Financial Services will host its Annual General Meeting on 7th of May
• Salary of US$896.3k is part of CEO Jim Lally's total remuneration
• Total compensation is similar to the industry average
• Enterprise Financial Services' EPS grew by 7.7% over the past three years while total shareholder return over the past three years was 25%

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CEO Jim Lally has done a decent job of delivering relatively good performance at Enterprise Financial Services Corp (NASDAQ:EFSC) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 7th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Enterprise Financial Services

Comparing Enterprise Financial Services Corp's CEO Compensation With The Industry

Our data indicates that Enterprise Financial Services Corp has a market capitalization of US$1.9b, and total annual CEO compensation was reported as US$3.6m for the year to December 2024. That's a fairly small increase of 4.1% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$896k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$3.1m. This suggests that Enterprise Financial Services remunerates its CEO largely in line with the industry average. Moreover, Jim Lally also holds US$7.0m worth of Enterprise Financial Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that Enterprise Financial Services allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Enterprise Financial Services Corp's Growth

Enterprise Financial Services Corp's earnings per share (EPS) grew 7.7% per year over the last three years. Its revenue is up 6.5% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 Enterprise Financial Services Corp Been A Good Investment?

With a total shareholder return of 25% over three years, Enterprise Financial Services Corp shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same 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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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 Enterprise Financial Services that investors should look into moving forward.

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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.