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In the past three years, shareholders of Bank of Marin Bancorp (NASDAQ:BMRC) have seen a loss on their investment. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 11 May 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Bank of Marin Bancorp
Comparing Bank of Marin Bancorp's CEO Compensation With the industry
According to our data, Bank of Marin Bancorp has a market capitalization of US$471m, and paid its CEO total annual compensation worth US$1.1m over the year to December 2020. That's a slight decrease of 3.2% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$489k.
For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.1m. This suggests that Bank of Marin Bancorp remunerates its CEO largely in line with the industry average. Moreover, Russ Colombo also holds US$2.7m worth of Bank of Marin Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$489k | US$478k | 43% |
| Other | US$648k | US$697k | 57% |
| Total Compensation | US$1.1m | US$1.2m | 100% |
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. Bank of Marin Bancorp is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Bank of Marin Bancorp's Growth
Over the past three years, Bank of Marin Bancorp has seen its earnings per share (EPS) grow by 19% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.