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Commerce Bancshares Inc. (NASDAQ:CBSH), a Missouri-based state commercial bank with a market capitalization of $8.98 billion, has disclosed recent changes to its executive compensation structure. According to InvestingPro analysis, the bank maintains a "GREAT" financial health score, positioning it well among its peers. On Monday, the bank’s Compensation and Human Resources Committee approved new salary figures for 2025, which will take effect on March 29, 2025, and awarded cash bonuses and restricted stock awards to its top executives.
John W. Kemper (NYSE:KMPR), the President and CEO, will receive a base salary of $1,050,000, a cash bonus of $1,964,441, and 43,931 restricted stock awards. Executive Vice President and CFO Charles G. Kim, along with Executive Vice President Kevin G. Barth, will each have a salary of $601,093, a bonus of $705,904, and 7,946 restricted stock awards. Executive Vice Presidents Robert S. Holmes and John K. Handy will also see changes in their compensation, with Holmes receiving a salary of $531,738, a bonus of $550,323, and 6,316 restricted stock awards, while Handy will have a salary of $531,738, a bonus of $409,386, and 7,845 restricted stock awards.
The cash bonuses are part of the company’s Executive Incentive Compensation Plan and are performance-based, while the restricted stock awards are granted under the company’s Equity Incentive Plan. The specifics of the performance criteria for these awards have not been disclosed in the filing. The company’s solid performance is reflected in its 5.16% revenue growth over the last twelve months, with InvestingPro data showing six analysts revising their earnings estimates upward for the upcoming period.
Commerce Bancshares’ decision to update its executive pay structure reflects the company’s ongoing efforts to maintain competitive compensation practices for its senior leadership team. The changes in compensation are detailed in a filing with the U.S. Securities and Exchange Commission dated January 31, 2025, based on the events reported on January 28, 2025.
Investors and analysts often scrutinize changes in executive compensation as they can impact company finances and signal the board’s priorities. In the case of Commerce Bancshares, these changes are part of the regular review and adjustment of executive compensation.
The bank, which is headquartered at 1000 Walnut in Kansas City, Missouri, has not provided additional commentary on the changes beyond the factual information detailed in the SEC filing. Notably, InvestingPro data reveals the bank has maintained dividend payments for 54 consecutive years, with a current dividend yield of 1.62% and a 5% dividend growth in the last twelve months, demonstrating a strong commitment to shareholder returns.
In other recent news, Commerce Bancshares has announced a 7% increase of its quarterly dividend to $0.275 per share, continuing its 57-year streak of annual dividend growth. This development follows the bank’s strong fourth-quarter earnings that exceeded analyst estimates, with earnings per share of $1.01 surpassing the expected $0.92. Revenue was reported at $422.08 million, exceeding expectations of $416.66 million. In light of these recent developments, analyst firm Piper Sandler has raised its price target for Commerce Bancshares to $72, while maintaining a neutral rating. The firm has also increased its earnings per share estimates for the bank for the years 2025 and 2026, reflecting an improved forecast for the bank’s net interest income and operating expenses. Despite these positive developments, Piper Sandler analysts maintain a neutral stance on the stock due to perceived limited opportunities for additional valuation growth. These are the recent developments concerning Commerce Bancshares.
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