Key Insights

• Amerant Bancorp to hold its Annual General Meeting on 8th of May
• CEO Jerry Plush's total compensation includes salary of US$90.0k
• The total compensation is similar to the average for the industry
• Amerant Bancorp's EPS grew by 44% over the past three years while total shareholder return over the past three years was 12%

CEO Jerry Plush has done a decent job of delivering relatively good performance at Amerant Bancorp Inc. (NYSE:AMTB) 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 8th of May. We present our case of why we think CEO compensation looks fair.

How Does Total Compensation For Jerry Plush Compare With Other Companies In The Industry?

Our data indicates that Amerant Bancorp Inc. has a market capitalization of US$727m, and total annual CEO compensation was reported as US$2.1m for the year to December 2023. Notably, that's a decrease of 28% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$90k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$1.9m. This suggests that Amerant Bancorp remunerates its CEO largely in line with the industry average. Moreover, Jerry Plush also holds US$4.2m worth of Amerant Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to Jerry Plush as compared to non-salary compensation over the one-year period examined. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Amerant Bancorp Inc.'s Growth

Amerant Bancorp Inc.'s earnings per share (EPS) grew 44% per year over the last three years. In the last year, its revenue is up 3.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Amerant Bancorp Inc. Been A Good Investment?

Amerant Bancorp Inc. has served shareholders reasonably well, with a total return of 12% over three years. 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.

To Conclude...

Amerant Bancorp primarily uses non-salary benefits to reward its CEO. 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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for Amerant Bancorp that you should be aware of before investing.

Important note: Amerant Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.