Some Shareholders May find It Hard To Increase First Community Bankshares, Inc.'s (NASDAQ:FCBC) CEO Compensation This Year

Performance at First Community Bankshares, Inc. (NASDAQ:FCBC) has been reasonably good and CEO Will Stafford has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27 April 2021. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for First Community Bankshares

How Does Total Compensation For Will Stafford Compare With Other Companies In The Industry?

According to our data, First Community Bankshares, Inc. has a market capitalization of US$500m, and paid its CEO total annual compensation worth US$867k over the year to December 2020. That's a modest increase of 4.9% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$420k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.1m. From this we gather that Will Stafford is paid around the median for CEOs in the industry. Moreover, Will Stafford also holds US$5.7m worth of First Community Bankshares stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$420k	US$420k	48%
Other	US$447k	US$407k	52%
Total Compensation	US$867k	US$827k	100%

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that First Community Bankshares pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at First Community Bankshares, Inc.'s Growth Numbers

Over the past three years, First Community Bankshares, Inc. has seen its earnings per share (EPS) grow by 17% per year. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has First Community Bankshares, Inc. Been A Good Investment?

With a total shareholder return of 0.8% over three years, First Community Bankshares, Inc. has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for First Community Bankshares that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

When trading First Community Bankshares or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.