Shareholders May Not Be So Generous With Northeast Bank's (NASDAQ:NBN) CEO Compensation And Here's Why

Key Insights

• Northeast Bank's Annual General Meeting to take place on 18th of November
• Total pay for CEO Rick Wayne includes US$674.7k salary
• Total compensation is 117% above industry average
• Over the past three years, Northeast Bank's EPS grew by 25% and over the past three years, the total shareholder return was 99%

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CEO Rick Wayne has done a decent job of delivering relatively good performance at Northeast Bank (NASDAQ:NBN) recently. As shareholders go into the upcoming AGM on 18th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Northeast Bank

Comparing Northeast Bank's CEO Compensation With The Industry

Our data indicates that Northeast Bank has a market capitalization of US$728m, and total annual CEO compensation was reported as US$3.7m for the year to June 2025. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$675k.

For comparison, other companies in the American Banks industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$1.7m. This suggests that Rick Wayne is paid more than the median for the industry. Furthermore, Rick Wayne directly owns US$60m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that Northeast Bank allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Northeast Bank's Growth Numbers

Over the past three years, Northeast Bank has seen its earnings per share (EPS) grow by 25% per year. Its revenue is up 36% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Northeast Bank Been A Good Investment?

We think that the total shareholder return of 99%, over three years, would leave most Northeast Bank shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

Shareholders may want to check for free if Northeast Bank insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.