We Think Some Shareholders May Hesitate To Increase FVCBankcorp, Inc.'s (NASDAQ:FVCB) CEO Compensation

CEO David Pijor has done a decent job of delivering relatively good performance at FVCBankcorp, Inc. (NASDAQ:FVCB) recently. 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 19 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for FVCBankcorp

Comparing FVCBankcorp, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that FVCBankcorp, Inc. has a market capitalization of US$243m, and reported total annual CEO compensation of US$1.1m for the year to December 2020. That's a notable decrease of 34% on last year. We note that the salary portion, which stands at US$691.7k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$772k. Accordingly, our analysis reveals that FVCBankcorp, Inc. pays David Pijor north of the industry median. Moreover, David Pijor also holds US$4.6m worth of FVCBankcorp 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$692k	US$640k	61%
Other	US$442k	US$1.1m	39%
Total Compensation	US$1.1m	US$1.7m	100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. FVCBankcorp pays out 61% of remuneration in the form of a salary, significantly higher than the industry average. 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.

A Look at FVCBankcorp, Inc.'s Growth Numbers

FVCBankcorp, Inc.'s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 9.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 FVCBankcorp, Inc. Been A Good Investment?

With a total shareholder return of 3.1% over three years, FVCBankcorp, Inc. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 FVCBankcorp that you should be aware of before investing.

Switching gears from FVCBankcorp, 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. 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.
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