Here's Why We Think Marathon Bancorp, Inc.'s (NASDAQ:MBBC) CEO Compensation Looks Fair for the time being

Key Insights

• Marathon Bancorp's Annual General Meeting to take place on 18th of November
• Salary of US$346.5k is part of CEO Nick Zillges's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Marathon Bancorp's EPS fell by 68% and over the past three years, the total shareholder return was 36%

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Marathon Bancorp, Inc. (NASDAQ:MBBC) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 18th of November. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for Marathon Bancorp

How Does Total Compensation For Nick Zillges Compare With Other Companies In The Industry?

Our data indicates that Marathon Bancorp, Inc. has a market capitalization of US$31m, and total annual CEO compensation was reported as US$573k for the year to June 2025. We note that's an increase of 54% above last year. We note that the salary portion, which stands at US$346.5k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the American Banks industry with market capitalizations under US$200m, the reported median total CEO compensation was US$612k. From this we gather that Nick Zillges is paid around the median for CEOs in the industry. What's more, Nick Zillges holds US$879k worth of shares in the company in their own name.

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. It's interesting to note that Marathon Bancorp pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Marathon Bancorp, Inc.'s Growth Numbers

Over the last three years, Marathon Bancorp, Inc. has shrunk its earnings per share by 68% per year. Its revenue is up 1.9% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Marathon Bancorp, Inc. Been A Good Investment?

We think that the total shareholder return of 36%, over three years, would leave most Marathon Bancorp, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Marathon Bancorp we think you should know about.

Switching gears from Marathon Bancorp, 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.