Key Insights

• CrossFirst Bankshares will host its Annual General Meeting on 14th of May
• CEO Mike Maddox's total compensation includes salary of US$712.5k
• Total compensation is similar to the industry average
• CrossFirst Bankshares' EPS grew by 51% over the past three years while total shareholder loss over the past three years was 11%

In the past three years, shareholders of CrossFirst Bankshares, Inc. (NASDAQ:CFB) 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 14th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Mike Maddox Compare With Other Companies In The Industry?

According to our data, CrossFirst Bankshares, Inc. has a market capitalization of US$645m, and paid its CEO total annual compensation worth US$1.9m over the year to December 2023. We note that's an increase of 18% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$713k.

For comparison, other companies in the American Banks industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$1.9m. From this we gather that Mike Maddox is paid around the median for CEOs in the industry. Furthermore, Mike Maddox directly owns US$2.8m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. In CrossFirst Bankshares' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at CrossFirst Bankshares, Inc.'s Growth Numbers

CrossFirst Bankshares, Inc. has seen its earnings per share (EPS) increase by 51% a year over the past three years. Its revenue is up 12% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 CrossFirst Bankshares, Inc. Been A Good Investment?

Since shareholders would have lost about 11% over three years, some CrossFirst Bankshares, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

So you may want to check if insiders are buying CrossFirst Bankshares shares with their own money (free access).

Important note: CrossFirst Bankshares 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.