It May Be Possible That LCNB Corp.'s (NASDAQ:LCNB) CEO Compensation Could Get Bumped Up

Key Insights

• LCNB will host its Annual General Meeting on 19th of May
• Total pay for CEO Eric Meilstrup includes US$470.0k salary
• The total compensation is 40% less than the average for the industry
• LCNB's EPS declined by 11% over the past three years while total shareholder return over the past three years was 9.0%

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The decent performance at LCNB Corp. (NASDAQ:LCNB) recently will please most shareholders as they go into the AGM coming up on 19th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for LCNB

Comparing LCNB Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that LCNB Corp. has a market capitalization of US$209m, and reported total annual CEO compensation of US$599k for the year to December 2024. That's a notable decrease of 27% on last year. We note that the salary portion, which stands at US$470.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the American Banks industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.0m. Accordingly, LCNB pays its CEO under the industry median. Moreover, Eric Meilstrup also holds US$663k worth of LCNB stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	US$470k	US$431k	79%
Other	US$129k	US$391k	21%
Total Compensation	US$599k	US$822k	100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. It's interesting to note that LCNB pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

LCNB Corp.'s Growth

Over the last three years, LCNB Corp. has shrunk its earnings per share by 11% per year. Its revenue is up 19% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has LCNB Corp. Been A Good Investment?

LCNB Corp. has not done too badly by shareholders, with a total return of 9.0%, over three years. It would be nice to see that metric improve in the future. 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.

In Summary...

The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying LCNB shares with their own money (free access).

Switching gears from LCNB, 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. 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.