Posted: 05/17/2025 03:44 am
BayFirst Financial Corp. (NASDAQ: BAFN), a state commercial bank, has undergone significant changes in its executive compensation structure over recent years, reflecting the broader operational and strategic shifts underway within the company. This analysis provides insight into the compensation packages of key executives, correlating them with the company’s recent business outcomes and market performance.
In 2024, Scott J. McKim, Executive Vice President and Chief Financial Officer, received a total compensation of $343,970, consisting of a base salary of $280,000, a bonus of $29,476, a stock award valued at $14,625, and other compensation amounting to $19,869. McKim’s remuneration underscores the bank's cost-containment focus, as it navigates through challenging market conditions^1.
Comparatively, in 2023, Anthony N. Leo, the then-CEO, had a total compensation package of $688,618. This included a base salary of $345,015, a bonus of $1,024, significant stock awards worth $97,905, and additional incentive plan compensation of $210,838. The substantial difference in the total compensation between Leo and McKim partially aligns with their different roles and responsibilities, as well as the performance incentives tied to Leo’s leadership at the helm^2.
The compensation in 2022 for Thomas G. Zernick, President, was $398,627, primarily composed of a $300,015 salary and a bonus of $25,000. This package reflects a structured incentive plan aimed at aligning executive interests with that of the shareholders during a phase when the company was laying foundational strategies for future growth^3.
In the backdrop of these figures, BayFirst announced a positive 2024, with earnings per share increasing significantly by the fourth quarter and the introduction of a share buyback program. However, this momentum encountered a setback in early 2025, as the company reported a net loss of $0.3 million for the first quarter due to decreased loan sales and increased credit costs^4.
Despite the robust close to 2024, BayFirst’s stock has seen volatility, currently priced at $14.98, marking a decrease from previous highs. This market reaction highlights investor concerns about the sustainability of BayFirst’s earnings trajectory under changing economic conditions^5.
The strategic focus on expanding core deposits and ramping up conventional lending could be seen as a pivot towards stabilizing financial outcomes and possibly recalibrating executive incentives to drive long-term value. As BayFirst navigates these challenges, executive compensation remains a barometer of its directional shifts, responsive to both internal performance metrics and external market pressures.
1. Scott J. McKim's 2024 Compensation Details: SEC filing - [Link](https://www.sec.gov/Archives/edgar/data/1649739/000164973925000110/0001649739-25-000110-index.htm)
2. Anthony N. Leo's 2023 Compensation: SEC filing - [Link](https://www.sec.gov/Archives/edgar/data/1649739/000164973924000125/0001649739-24-000125-index.htm)
3. Thomas G. Zernick's 2022 Compensation: SEC filing - [Link](https://www.sec.gov/Archives/edgar/data/1649739/000164973923000121/0001649739-23-000121-index.htm)
4. BayFirst's 2025 First Quarter Financial Report: Globe Newswire - [Link](https://www.globenewswire.com/news-release/2025/04/24/3067888/0/en/BayFirst-Financial-Corp-Reports-First-Quarter-2025-Results.html)
5. Current Market Snapshot of BAFN: Market data - [Link](https://www.zacks.com/stock/news/2459377/bayfirst-incurs-loss-in-q1-as-loan-sales-decline-stock-down-6?cid=CS-STOCKNEWSAPI-FT-microcap_article|earnings-2459377)
