Here's Why Some Shareholders May Not Be Too Generous With Glacier Bancorp, Inc.'s (NYSE:GBCI) CEO Compensation This Year

Key Insights

• Glacier Bancorp will host its Annual General Meeting on 24th of April
• Total pay for CEO Randy Chesler includes US$925.4k salary
• The total compensation is 38% less than the average for the industry
• Over the past three years, Glacier Bancorp's EPS fell by 11% and over the past three years, the total loss to shareholders 35%

The disappointing performance at Glacier Bancorp, Inc. (NYSE:GBCI) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 24th of April. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for Glacier Bancorp

How Does Total Compensation For Randy Chesler Compare With Other Companies In The Industry?

Our data indicates that Glacier Bancorp, Inc. has a market capitalization of US$4.0b, and total annual CEO compensation was reported as US$3.0m for the year to December 2023. We note that's a small decrease of 6.1% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$925k.

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$4.7m. That is to say, Randy Chesler is paid under the industry median. What's more, Randy Chesler holds US$2.3m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$925k	US$881k	31%
Other	US$2.0m	US$2.3m	69%
Total Compensation	US$3.0m	US$3.2m	100%

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Glacier Bancorp sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

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

Over the last three years, Glacier Bancorp, Inc. has shrunk its earnings per share by 11% per year. It saw its revenue drop 11% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Glacier Bancorp, Inc. Been A Good Investment?

Few Glacier Bancorp, Inc. shareholders would feel satisfied with the return of -35% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Glacier Bancorp that investors should look into moving forward.

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.