Lakeland Financial Corporation's (NASDAQ:LKFN) CEO Will Probably Struggle To See A Pay Rise This Year
Key Insights
- Lakeland Financial to hold its Annual General Meeting on 8th of April
- CEO David Findlay's total compensation includes salary of US$712.4k
- The total compensation is 32% less than the average for the industry
- Lakeland Financial's EPS declined by 1.5% over the past three years while total shareholder loss over the past three years was 12%
Performance at Lakeland Financial Corporation (NASDAQ:LKFN) has not been particularly rosy recently and shareholders will likely be holding CEO David Findlay and the board accountable for this. The next AGM coming up on 8th of April will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
Check out our latest analysis for Lakeland Financial
Comparing Lakeland Financial Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that Lakeland Financial Corporation has a market capitalization of US$1.6b, and reported total annual CEO compensation of US$2.0m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$712k.
For comparison, other companies in the American Banks industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.0m. In other words, Lakeland Financial pays its CEO lower than the industry median. What's more, David Findlay holds US$6.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$712k | US$685k | 35% |
| Other | US$1.3m | US$1.4m | 65% |
| Total Compensation | US$2.0m | US$2.1m | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Lakeland Financial sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Lakeland Financial Corporation's Growth Numbers
Lakeland Financial Corporation has reduced its earnings per share by 1.5% a year over the last three years. Its revenue is down 1.8% over the previous year.
The lack of EPS growth is certainly uninspiring. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Lakeland Financial Corporation Been A Good Investment?
Given the total shareholder loss of 12% over three years, many shareholders in Lakeland Financial Corporation 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Lakeland Financial that investors should be aware of in a dynamic business environment.
Switching gears from Lakeland Financial, 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.