Key Insights

• CB Financial Services to hold its Annual General Meeting on 15th of May
• Salary of US$449.2k is part of CEO John Montgomery's total remuneration
• Total compensation is 84% above industry average
• CB Financial Services' EPS grew by 77% over the past three years while total shareholder return over the past three years was 17%

Under the guidance of CEO John Montgomery, CB Financial Services, Inc. (NASDAQ:CBFV) 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 15th of May. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For John Montgomery Compare With Other Companies In The Industry?

At the time of writing, our data shows that CB Financial Services, Inc. has a market capitalization of US$116m, and reported total annual CEO compensation of US$1.2m for the year to December 2023. Notably, that's an increase of 81% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$449k.

On comparing similar-sized companies in the American Banks industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$643k. This suggests that John Montgomery is paid more than the median for the industry. Furthermore, John Montgomery directly owns US$1.1m worth of shares in the company.

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. CB Financial Services 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 CB Financial Services, Inc.'s Growth Numbers

CB Financial Services, Inc. has seen its earnings per share (EPS) increase by 77% a year over the past three years. It achieved revenue growth of 41% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has CB Financial Services, Inc. Been A Good Investment?

CB Financial Services, Inc. has served shareholders reasonably well, with a total return of 17% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for CB Financial Services that you should be aware of before investing.

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.