Yahoo Finance It Looks Like Union Bankshares, Inc.'s (NASDAQ:UNB) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Union Bankshares will host its Annual General Meeting on 15th of May
Total pay for CEO David Silverman includes US$460.0k salary
Total compensation is similar to the industry average
Union Bankshares' EPS declined by 7.7% over the past three years while total shareholder loss over the past three years was 10%
Union Bankshares, Inc. (NASDAQ:UNB) has not performed well recently and CEO David Silverman will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 15th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
See our latest analysis for Union Bankshares
Comparing Union Bankshares, Inc.'s CEO Compensation With The Industry
According to our data, Union Bankshares, Inc. has a market capitalization of US$115m, and paid its CEO total annual compensation worth US$714k over the year to December 2023. Notably, that's a decrease of 9.5% over the year before. In particular, the salary of US$460.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the American Banks industry with market capitalizations under US$200m, the reported median total CEO compensation was US$643k. This suggests that Union Bankshares remunerates its CEO largely in line with the industry average. Furthermore, David Silverman directly owns US$732k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$460k | US$437k | 64% |
Other | US$254k | US$352k | 36% |
Total Compensation | US$714k | US$789k | 100% |
Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. Union Bankshares pays out 64% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Union Bankshares, Inc.'s Growth Numbers
Over the last three years, Union Bankshares, Inc. has shrunk its earnings per share by 7.7% per year. In the last year, its revenue is down 3.2%.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Union Bankshares, Inc. Been A Good Investment?
Given the total shareholder loss of 10% over three years, many shareholders in Union Bankshares, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Union Bankshares.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
