In 1994 Eric Wintemute was appointed CEO of American Vanguard Corporation (NYSE:AVD). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Eric Wintemute's Compensation Compare With Similar Sized Companies?
According to our data, American Vanguard Corporation has a market capitalization of US$511m, and pays its CEO total annual compensation worth US$2.3m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$652k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.9m.
That means Eric Wintemute receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at American Vanguard, below.
Is American Vanguard Corporation Growing?
American Vanguard Corporation has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). Its revenue is up 9.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has American Vanguard Corporation Been A Good Investment?
American Vanguard Corporation has generated a total shareholder return of 6.0% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Eric Wintemute is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying American Vanguard shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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