Should Shareholders Worry About First Seacoast Bancorp, Inc.'s (NASDAQ:FSEA) CEO Compensation Package?

Key Insights

• First Seacoast Bancorp will host its Annual General Meeting on 30th of May
• Salary of US$335.5k is part of CEO Jim Brannen's total remuneration
• The total compensation is 41% less than the average for the industry
• First Seacoast Bancorp's EPS declined by 129% over the past three years while total shareholder loss over the past three years was 22%

Performance at First Seacoast Bancorp, Inc. (NASDAQ:FSEA) has not been particularly rosy recently and shareholders will likely be holding CEO Jim Brannen and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 30th of May. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for First Seacoast Bancorp

How Does Total Compensation For Jim Brannen Compare With Other Companies In The Industry?

At the time of writing, our data shows that First Seacoast Bancorp, Inc. has a market capitalization of US$44m, and reported total annual CEO compensation of US$378k for the year to December 2023. That's just a smallish increase of 7.3% on last year. Notably, the salary which is US$335.5k, represents most of the total compensation being paid.

In comparison with other companies in the American Banks industry with market capitalizations under US$200m, the reported median total CEO compensation was US$639k. In other words, First Seacoast Bancorp pays its CEO lower than the industry median. Moreover, Jim Brannen also holds US$281k worth of First Seacoast Bancorp stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$336k	US$305k	89%
Other	US$42k	US$47k	11%
Total Compensation	US$378k	US$352k	100%

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that First Seacoast Bancorp pays out a greater portion of remuneration through salary, compared to the industry. 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.

First Seacoast Bancorp, Inc.'s Growth

Over the last three years, First Seacoast Bancorp, Inc. has shrunk its earnings per share by 129% per year. It saw its revenue drop 49% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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

Given the total shareholder loss of 22% over three years, many shareholders in First Seacoast Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for First Seacoast Bancorp you should be aware of, and 1 of them makes us a bit uncomfortable.

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.