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How Does Agrimin's (ASX:AMN) CEO Salary Compare to Peers?

Simply Wall St
·4 mins read

This article will reflect on the compensation paid to Mark Savich who has served as CEO of Agrimin Limited (ASX:AMN) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Agrimin

How Does Total Compensation For Mark Savich Compare With Other Companies In The Industry?

According to our data, Agrimin Limited has a market capitalization of AU$108m, and paid its CEO total annual compensation worth AU$344k over the year to June 2020. That's a notable increase of 48% on last year. In particular, the salary of AU$300.3k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$283m, we found that the median total CEO compensation was AU$304k. So it looks like Agrimin compensates Mark Savich in line with the median for the industry. Moreover, Mark Savich also holds AU$5.5m worth of Agrimin stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

AU$300k

AU$150k

87%

Other

AU$44k

AU$82k

13%

Total Compensation

AU$344k

AU$232k

100%

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. According to our research, Agrimin has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ceo-compensation

A Look at Agrimin Limited's Growth Numbers

Over the last three years, Agrimin Limited has shrunk its earnings per share by 20% per year. Its revenue is up 2,809% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Agrimin Limited Been A Good Investment?

Agrimin Limited has not done too badly by shareholders, with a total return of 8.9%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we noted earlier, Agrimin pays its CEO in line with similar-sized companies belonging to the same industry. But revenue growth over the last year can't be ignored. Meanwhile, we would have liked to see shareholder returns post more substantial growth. EPS growth is a further sore spot — the metric is negative over the last three years. But we don't think the CEO compensation is a problem, although shareholders might want to see more growth before agreeing that Mark should get a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 6 warning signs for Agrimin you should be aware of, and 3 of them don't sit too well with us.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.