David Hanna has been the CEO of Atlanticus Holdings Corporation (NASDAQ:ATLC) since 1996. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does David Hanna's Compensation Compare With Similar Sized Companies?
According to our data, Atlanticus Holdings Corporation has a market capitalization of US$48m, and pays its CEO total annual compensation worth US$1.1m. (This number is for the twelve months until December 2018). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$600k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$431k.
As you can see, David Hanna is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Atlanticus Holdings Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Atlanticus Holdings has changed from year to year.
Is Atlanticus Holdings Corporation Growing?
Atlanticus Holdings Corporation has reduced its earnings per share by an average of 60% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 47% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Atlanticus Holdings Corporation Been A Good Investment?
Atlanticus Holdings Corporation has not done too badly by shareholders, with a total return of 9.9%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount Atlanticus Holdings Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. Whatever your view on compensation, you might want to check if insiders are buying or selling Atlanticus Holdings shares (free trial).
Important note: Atlanticus Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.