Here's Why Shareholders May Want To Be Cautious With Increasing First Seacoast Bancorp, Inc.'s (NASDAQ:FSEA) CEO Pay Packet

Key Insights

• First Seacoast Bancorp will host its Annual General Meeting on 29th of May
• Total pay for CEO Jim Brannen includes US$350.0k salary
• The total compensation is similar to the average for the industry
• First Seacoast Bancorp's EPS declined by 73% over the past three years while total shareholder loss over the past three years was 7.9%

We've discovered 1 warning sign about First Seacoast Bancorp. View them for free.

In the past three years, shareholders of First Seacoast Bancorp, Inc. (NASDAQ:FSEA) have seen a loss on their investment. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 29th of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for First Seacoast Bancorp

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

According to our data, First Seacoast Bancorp, Inc. has a market capitalization of US$49m, and paid its CEO total annual compensation worth US$607k over the year to December 2024. Notably, that's an increase of 42% over the year before. In particular, the salary of US$350.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the American Banks industry with market capitalizations below US$200m, reported a median total CEO compensation of US$628k. This suggests that First Seacoast Bancorp remunerates its CEO largely in line with the industry average. Moreover, Jim Brannen also holds US$564k worth of First Seacoast Bancorp stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$350k	US$336k	58%
Other	US$257k	US$91k	42%
Total Compensation	US$607k	US$426k	100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. First Seacoast Bancorp pays out 58% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at First Seacoast Bancorp, Inc.'s Growth Numbers

Over the last three years, First Seacoast Bancorp, Inc. has shrunk its earnings per share by 73% per year. In the last year, its revenue is up 98%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has First Seacoast Bancorp, Inc. Been A Good Investment?

Since shareholders would have lost about 7.9% over three years, some First Seacoast 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 company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for First Seacoast Bancorp that investors should be aware of in a dynamic business environment.

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.

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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.