Key Insights

• Colony Bankcorp will host its Annual General Meeting on 16th of May
• Salary of US$485.0k is part of CEO T. Fountain's total remuneration
• The overall pay is 41% below the industry average
• Colony Bankcorp's EPS declined by 7.6% over the past three years while total shareholder loss over the past three years was 25%

Performance at Colony Bankcorp, Inc. (NASDAQ:CBAN) has not been particularly rosy recently and shareholders will likely be holding CEO T. Fountain and the board accountable for this. 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 16th of May. The data we gathered below shows that CEO compensation looks acceptable for now.

Comparing Colony Bankcorp, Inc.'s CEO Compensation With The Industry

Our data indicates that Colony Bankcorp, Inc. has a market capitalization of US$198m, and total annual CEO compensation was reported as US$624k for the year to December 2023. Notably, that's a decrease of 10.0% over the year before. Notably, the salary which is US$485.0k, represents most of the total compensation being paid.

On comparing similar companies from the American Banks industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$1.1m. That is to say, T. Fountain is paid under the industry median. Furthermore, T. Fountain directly owns US$878k worth of shares in the company.

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. According to our research, Colony Bankcorp has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Colony Bankcorp, Inc.'s Growth

Over the last three years, Colony Bankcorp, Inc. has shrunk its earnings per share by 7.6% per year. In the last year, its revenue is down 1.1%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Colony Bankcorp, Inc. Been A Good Investment?

With a three year total loss of 25% for the shareholders, Colony Bankcorp, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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. We've identified 1 warning sign for Colony Bankcorp that investors should be aware of in a dynamic business environment.

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.