Shareholders May Be A Bit More Conservative With Atlantic Union Bankshares Corporation's (NYSE:AUB) CEO Compensation For Now

Key Insights

• Atlantic Union Bankshares' Annual General Meeting to take place on 6th of May
• CEO John Asbury's total compensation includes salary of US$975.0k
• The overall pay is comparable to the industry average
• Atlantic Union Bankshares' three-year loss to shareholders was 11% while its EPS was down 24% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Atlantic Union Bankshares. Read for free now.

As many shareholders of Atlantic Union Bankshares Corporation (NYSE:AUB) will be aware, they have not made a gain on their investment in the past three years. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 6th of May, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

See our latest analysis for Atlantic Union Bankshares

Comparing Atlantic Union Bankshares Corporation's CEO Compensation With The Industry

Our data indicates that Atlantic Union Bankshares Corporation has a market capitalization of US$3.9b, and total annual CEO compensation was reported as US$4.3m for the year to December 2024. Notably, that's an increase of 20% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$975k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$4.0m. From this we gather that John Asbury is paid around the median for CEOs in the industry. What's more, John Asbury holds US$7.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$975k	US$894k	23%
Other	US$3.3m	US$2.7m	77%
Total Compensation	US$4.3m	US$3.6m	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. It's interesting to note that Atlantic Union Bankshares allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Atlantic Union Bankshares Corporation's Growth

Over the last three years, Atlantic Union Bankshares Corporation has shrunk its earnings per share by 24% per year. In the last year, its revenue is up 17%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Atlantic Union Bankshares Corporation Been A Good Investment?

Since shareholders would have lost about 11% over three years, some Atlantic Union Bankshares Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Atlantic Union Bankshares that investors should be aware of in a dynamic business environment.

Switching gears from Atlantic Union Bankshares, 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.