Ohio Valley Banc Corp.'s (NASDAQ:OVBC) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Ohio Valley Banc will host its Annual General Meeting on 14th of May
• Salary of US$363.7k is part of CEO Larry Miller's total remuneration
• The overall pay is 32% below the industry average
• Ohio Valley Banc's total shareholder return over the past three years was 26% while its EPS was down 1.6% over the past three years

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Performance at Ohio Valley Banc Corp. (NASDAQ:OVBC) has been rather uninspiring recently and shareholders may be wondering how CEO Larry Miller plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 14th of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Ohio Valley Banc

Comparing Ohio Valley Banc Corp.'s CEO Compensation With The Industry

According to our data, Ohio Valley Banc Corp. has a market capitalization of US$172m, and paid its CEO total annual compensation worth US$679k over the year to December 2024. That's a modest increase of 4.0% on the prior year. We note that the salary of US$363.7k makes up a sizeable portion of the 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, Ohio Valley Banc pays its CEO under the industry median. Furthermore, Larry Miller directly owns US$622k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	US$364k	US$340k	54%
Other	US$316k	US$313k	46%
Total Compensation	US$679k	US$653k	100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that Ohio Valley Banc pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Ohio Valley Banc Corp.'s Growth

Ohio Valley Banc Corp. has reduced its earnings per share by 1.6% a year over the last three years. In the last year, its revenue is up 5.2%.

A lack of EPS improvement is not good to see. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Ohio Valley Banc Corp. Been A Good Investment?

Ohio Valley Banc Corp. has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

While it's true that shareholders have seen decent returns, it's hard to overlook the lack of earnings growth and this makes us wonder if the current returns can continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ohio Valley Banc.

Important note: Ohio Valley Banc is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.