Provident Financial Holdings, Inc.'s (NASDAQ:PROV) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Provident Financial Holdings will host its Annual General Meeting on 20th of November
• Salary of US$511.5k is part of CEO Donavon Ternes's total remuneration
• The overall pay is comparable to the industry average
• Provident Financial Holdings' EPS declined by 7.0% over the past three years while total shareholder return over the past three years was 25%

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Despite positive share price growth of 25% for Provident Financial Holdings, Inc. (NASDAQ:PROV) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 20th of November may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. 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 Provident Financial Holdings

Comparing Provident Financial Holdings, Inc.'s CEO Compensation With The Industry

According to our data, Provident Financial Holdings, Inc. has a market capitalization of US$100m, and paid its CEO total annual compensation worth US$733k over the year to June 2025. Notably, that's a decrease of 8.9% over the year before. We note that the salary portion, which stands at US$511.5k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the American Banks industry with market capitalizations below US$200m, reported a median total CEO compensation of US$612k. So it looks like Provident Financial Holdings compensates Donavon Ternes in line with the median for the industry. Moreover, Donavon Ternes also holds US$3.5m worth of Provident Financial Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. Provident Financial Holdings pays out 70% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Provident Financial Holdings, Inc.'s Growth

Over the last three years, Provident Financial Holdings, Inc. has shrunk its earnings per share by 7.0% per year. In the last year, its revenue changed by just 0.07%.

The decline in EPS is a bit concerning. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Provident Financial Holdings, Inc. Been A Good Investment?

Provident Financial Holdings, Inc. has served shareholders reasonably well, with a total return of 25% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Provident Financial Holdings (free visualization of insider trades).

Switching gears from Provident Financial Holdings, 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.