Stock Analysis

It's Unlikely That Meridian Corporation's (NASDAQ:MRBK) CEO Will See A Huge Pay Rise This Year

  •  Updated
NasdaqGS:MRBK
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Under the guidance of CEO Chris Annas, Meridian Corporation (NASDAQ:MRBK) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Meridian

Comparing Meridian Corporation's CEO Compensation With the industry

Our data indicates that Meridian Corporation has a market capitalization of US$163m, and total annual CEO compensation was reported as US$1.1m for the year to December 2020. Notably, that's an increase of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$465k.

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$763k. This suggests that Chris Annas is paid more than the median for the industry. Moreover, Chris Annas also holds US$6.6m worth of Meridian stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$465k US$450k 43%
Other US$604k US$488k 57%
Total CompensationUS$1.1m US$938k100%

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. Our data reveals that Meridian allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
NasdaqGS:MRBK CEO Compensation June 11th 2021

Meridian Corporation's Growth

Over the past three years, Meridian Corporation has seen its earnings per share (EPS) grow by 96% per year. It achieved revenue growth of 114% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Meridian Corporation Been A Good Investment?

Most shareholders would probably be pleased with Meridian Corporation for providing a total return of 62% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Meridian (2 are significant!) that you should be aware of before investing here.

Switching gears from Meridian, 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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