Does Associated Capital Group's (NYSE:AC) CEO Salary Compare Well With Industry Peers?
Doug Jamieson became the CEO of Associated Capital Group, Inc. (NYSE:AC) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Associated Capital Group.
See our latest analysis for Associated Capital Group
Comparing Associated Capital Group, Inc.'s CEO Compensation With the industry
According to our data, Associated Capital Group, Inc. has a market capitalization of US$764m, and paid its CEO total annual compensation worth US$1.3m over the year to December 2019. Notably, that's a decrease of 23% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$300k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$5.8m. In other words, Associated Capital Group pays its CEO lower than the industry median. What's more, Doug Jamieson holds US$1.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$300k | US$400k | 24% |
Other | US$963k | US$1.2m | 76% |
Total Compensation | US$1.3m | US$1.6m | 100% |
On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. According to our research, Associated Capital Group has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Associated Capital Group, Inc.'s Growth
Over the last three years, Associated Capital Group, Inc. has shrunk its earnings per share by 44% per year. Its revenue is up 29% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but 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?
Associated Capital Group, Inc. has not done too badly by shareholders, with a total return of 7.7%, 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, Associated Capital Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And revenue growth for the company is showing some positive trends.And revenues are growing at a healthy clip.And revenues are increasing at a good pace over the past year. But we were hoping for higher shareholder returns and positive EPS growth during this stretch, which, unfortunately, did not materialize. So even though we don't think compensation is too high, shareholders will likely want to see healthier returns, before they agree Doug deserves a raise.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Associated Capital Group that you should be aware of before investing.
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.
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