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Is Associated Capital Group, Inc.'s (NYSE:AC) CEO Paid At A Competitive Rate?

Simply Wall St

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Doug Jamieson has been the CEO of Associated Capital Group, Inc. (NYSE:AC) since 2016. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Associated Capital Group

How Does Doug Jamieson's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Associated Capital Group, Inc. has a market cap of US$887m, and is paying total annual CEO compensation of US$1.6m. (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$400k. 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.

A first glance this seems like a real positive for shareholders, since Doug Jamieson is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Associated Capital Group, below.

NYSE:AC CEO Compensation, July 10th 2019

Is Associated Capital Group, Inc. Growing?

On average over the last three years, Associated Capital Group, Inc. has shrunk earnings per share by 97% each year (measured with a line of best fit). It saw its revenue drop -15% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Associated Capital Group, Inc. Been A Good Investment?

With a total shareholder return of 31% over three years, Associated Capital Group, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

It appears that Associated Capital Group, Inc. remunerates its CEO below most similar sized companies.

Doug Jamieson is remunerated more modestly than is a normal at similar sized companies. But the company lacks earnings per share growth, and returns to shareholders are less than stellar. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer see improved performance, before increasing pay. So you may want to check if insiders are buying Associated Capital Group shares with their own money (free access).

If you want to buy a stock that is better than Associated Capital Group, 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.