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In 2013 Jay Bhattacherjee was appointed CEO of Aminex PLC (LON:AEX). 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 – 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.
How Does Jay Bhattacherjee’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Aminex PLC has a market cap of UK£54m, and is paying total annual CEO compensation of US$423k. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$338k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$319k.
Thus we can conclude that Jay Bhattacherjee receives more in total compensation than the median of a group of companies in the same market, and of similar size to Aminex PLC. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Aminex has changed over time.
Is Aminex PLC Growing?
On average over the last three years, Aminex PLC has grown earnings per share (EPS) by 36% each year (using a line of best fit). It saw its revenue drop -74% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Aminex PLC Been A Good Investment?
Aminex PLC has generated a total shareholder return of 5.4% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Aminex PLC with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. So you may want to check if insiders are buying Aminex shares with their own money (free access).
If you want to buy a stock that is better than Aminex, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.