Here's Why 1st Source Corporation's (NASDAQ:SRCE) CEO Might See A Pay Rise Soon

Key Insights

• 1st Source will host its Annual General Meeting on 24th of April
• Salary of US$836.5k is part of CEO Chris Murphy's total remuneration
• The total compensation is 37% less than the average for the industry
• 1st Source's EPS grew by 3.4% over the past three years while total shareholder return over the past three years was 27%

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Shareholders will probably not be disappointed by the robust results at 1st Source Corporation (NASDAQ:SRCE) recently and they will be keeping this in mind as they go into the AGM on 24th of April. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for 1st Source

Comparing 1st Source Corporation's CEO Compensation With The Industry

Our data indicates that 1st Source Corporation has a market capitalization of US$1.4b, and total annual CEO compensation was reported as US$2.0m for the year to December 2024. We note that's a decrease of 26% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$837k.

On comparing similar companies from the American Banks industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$3.2m. Accordingly, 1st Source pays its CEO under the industry median. Furthermore, Chris Murphy directly owns US$238m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. There isn't a significant difference between 1st Source and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at 1st Source Corporation's Growth Numbers

1st Source Corporation's earnings per share (EPS) grew 3.4% per year over the last three years. Its revenue is up 3.1% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has 1st Source Corporation Been A Good Investment?

With a total shareholder return of 27% over three years, 1st Source Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying 1st Source shares with their own money (free access).

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.