Increases to Byline Bancorp, Inc.'s (NYSE:BY) CEO Compensation Might Cool off for now

Key Insights

• Byline Bancorp's Annual General Meeting to take place on 3rd of June
• Salary of US$907.3k is part of CEO Roberto Herencia's total remuneration
• The overall pay is 60% above the industry average
• Over the past three years, Byline Bancorp's EPS grew by 1.2% and over the past three years, the total shareholder return was 8.6%

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Under the guidance of CEO Roberto Herencia, Byline Bancorp, Inc. (NYSE:BY) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Byline Bancorp

How Does Total Compensation For Roberto Herencia Compare With Other Companies In The Industry?

According to our data, Byline Bancorp, Inc. has a market capitalization of US$1.2b, and paid its CEO total annual compensation worth US$3.0m over the year to December 2024. That's a notable increase of 12% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$907k.

On comparing similar companies from the American Banks industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$1.9m. Hence, we can conclude that Roberto Herencia is remunerated higher than the industry median. Furthermore, Roberto Herencia directly owns US$10m 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 Byline Bancorp allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Byline Bancorp, Inc.'s Growth Numbers

Byline Bancorp, Inc. has seen its earnings per share (EPS) increase by 1.2% a year over the past three years. It achieved revenue growth of 3.5% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. 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 Byline Bancorp, Inc. Been A Good Investment?

Byline Bancorp, Inc. has not done too badly by shareholders, with a total return of 8.6%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

Shareholders may want to check for free if Byline Bancorp insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.