Key Insights

• Customers Bancorp's Annual General Meeting to take place on 28th of May
• CEO Jay Sidhu's total compensation includes salary of US$778.8k
• The overall pay is 31% above the industry average
• Customers Bancorp's EPS grew by 5.7% over the past three years while total shareholder return over the past three years was 32%

CEO Jay Sidhu has done a decent job of delivering relatively good performance at Customers Bancorp, Inc. (NYSE:CUBI) recently. As shareholders go into the upcoming AGM on 28th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Comparing Customers Bancorp, Inc.'s CEO Compensation With The Industry

According to our data, Customers Bancorp, Inc. has a market capitalization of US$1.5b, and paid its CEO total annual compensation worth US$3.8m over the year to December 2023. We note that's an increase of 42% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$779k.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$2.9m. This suggests that Jay Sidhu is paid more than the median for the industry. Moreover, Jay Sidhu also holds US$77m worth of Customers Bancorp stock directly under their own name, which reveals to us that they have a significant personal stake 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. In Customers Bancorp's 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.

Customers Bancorp, Inc.'s Growth

Customers Bancorp, Inc.'s earnings per share (EPS) grew 5.7% per year over the last three years. It achieved revenue growth of 23% over the last year.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Customers Bancorp, Inc. Been A Good Investment?

Customers Bancorp, Inc. has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Customers Bancorp that investors should be aware of in a dynamic business environment.

Switching gears from Customers Bancorp, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.