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Is Ameresco, Inc.'s (NYSE:AMRC) CEO Being Overpaid?

Simply Wall St

George Sakellaris has been the CEO of Ameresco, Inc. (NYSE:AMRC) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

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Check out our latest analysis for Ameresco

How Does George Sakellaris's Compensation Compare With Similar Sized Companies?

According to our data, Ameresco, Inc. has a market capitalization of US$768m, and pays its CEO total annual compensation worth US$1.2m. (This figure is for the year to December 2018). That's a notable increase of 23% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$733k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Ameresco has changed over time.

NYSE:AMRC CEO Compensation, May 22nd 2019

Is Ameresco, Inc. Growing?

Over the last three years Ameresco, Inc. has grown its earnings per share (EPS) by an average of 62% per year (using a line of best fit). In the last year, its revenue is up 2.7%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Ameresco, Inc. Been A Good Investment?

Boasting a total shareholder return of 228% over three years, Ameresco, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It looks like Ameresco, Inc. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that George Sakellaris deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Ameresco insiders are buying or selling shares.

If you want to buy a stock that is better than Ameresco, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.