Analyzing Executive Compensation at Bogota Financial Corp

Bogota Financial Corp. (NASDAQ: BSBK), a key player in the savings institutions sector, not federally chartered, has recently navigated a turbulent financial landscape, as highlighted by its declining earnings and strategic restructures. Amidst this backdrop, the compensatory dynamics for the company's key executives offer insightful revelations concerning prioritization and incentive structuring during financially challenging times.


The company's financial results have shown substantial fluctuations, particularly affected by a significant net loss reported for the year ended December 31, 2024. Bogota Financial recorded a net loss of $2.2 million or $0.17 per share, diverging significantly from the net income of $643,000 or $0.05 per share realized the previous year.[1] The company engaged in a strategic balance sheet restructuring which included a sale-leaseback transaction and the divestiture of securities, aiming to boost future profitability through improved net interest margins and return on assets.[2]

Despite these challenges, executive compensation remained robust, albeit with strategic adjustments in its composition. For instance, Robert Walsh, the Executive Vice President and Chief Lending Officer, received a total compensation of $293,914 in 2024, predominantly through a salary of $220,000 and incentive plan compensation of $40,000. Notably, Walsh's package excluded stock and option awards, aligning compensation closely with immediate fiscal prudence amidst the ongoing financial strain.[3]

Previously, in 2023, Kevin Pace, then-President and Chief Executive Officer, received total compensation amounting to $440,849. The structure emphasized stable salary ($286,000) and significant incentive plan compensation ($115,000), once again excluding stock and option awards, hinting at a strategic preference for liquid, immediate-reward incentives rather than long-term stock-based compensation during more volatile periods.[4]

The historical track from 2021 and 2020 further underscores a distinctive compensation strategy. In 2021, Kevin Pace, then-Executive Vice President and Chief Risk Officer, received a markedly higher total of $1,069,495 owing largely to substantial stock and option awards totaling over $600,000. This approach mirrored a broader, performance-based structure typically seen in periods of financial optimism.[5] Similarly, Joseph Coccaro, serving as President in 2020, had a total compensation of $782,497, reinforced by direct salary and incentive rewards.[6]

In response to Persistent market pressure and fiscal losses, the executive compensation strategy has evidently shifted towards tighter cash management with a reduction in equity compensation influences. Notably, the price adjustment on the NASDAQ, with shares trading at $7.15 and a year-low of $6.4[7], reiterates careful financial navigation moving forward.

As Bogota Financial readjusts its strategic focus, ongoing adaptations in executive compensation will likely continue to reflect its broader financial ambitions and operational recovery strategies.

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1. GlobeNewswire, "Bogota Financial Corp. Reports Results for the Three and Twelve Months Ended December 31, 2024," February 14, 2025. [Link](https://www.globenewswire.com/news-release/2025/02/14/3026913/0/en/Bogota-Financial-Corp-Reports-Results-for-the-Three-and-Twelve-Months-Ended-December-31-2024.html)

2. GlobeNewswire, "Bogota Financial Corp. Announces Sale-Leaseback Transaction and Balance Sheet Restructure," January 06, 2025. [Link](https://www.globenewswire.com/news-release/2025/01/06/3004709/0/en/Bogota-Financial-Corp-Announces-Sale-Leaseback-Transaction-and-Balance-Sheet-Restructure.html)

3. SEC Archives, "Compensation Data for Robert Walsh," 2024. [Link](https://www.sec.gov/Archives/edgar/data/1787414/000119312525081550/0001193125-25-081550-index.htm)

4. SEC Archives, "Compensation Data for Kevin Pace," 2023. [Link](https://www.sec.gov/Archives/edgar/data/1787414/000119312524093386/0001193125-24-093386-index.htm)

5. SEC Archives, "Compensation Data for Kevin Pace," 2021. [Link](https://www.sec.gov/Archives/edgar/data/1787414/000119312523090838/0001193125-23-090838-index.htm)

6. SEC Archives, "Compensation Data for Joseph Coccaro," 2020. [Link](https://www.sec.gov/Archives/edgar/data/1787414/000119312522099000/0001193125-22-099000-index.htm)

7. Financial Market Data, "Bogota Financial Corp. Stock Snapshot."