David Hanna became the CEO of Atlanticus Holdings Corporation (NASDAQ:ATLC) in 1996, 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 Atlanticus Holdings.
Comparing Atlanticus Holdings Corporation's CEO Compensation With the industry
At the time of writing, our data shows that Atlanticus Holdings Corporation has a market capitalization of US$129m, and reported total annual CEO compensation of US$1.8m for the year to December 2019. Notably, that's an increase of 63% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$600k.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.1m. Accordingly, our analysis reveals that Atlanticus Holdings Corporation pays David Hanna north of the industry median. Furthermore, David Hanna directly owns US$36m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that Atlanticus Holdings pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Atlanticus Holdings Corporation's Growth Numbers
Atlanticus Holdings Corporation has seen its earnings per share (EPS) increase by 97% a year over the past three years. Its revenue is up 157% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Atlanticus Holdings Corporation Been A Good Investment?
Boasting a total shareholder return of 253% over three years, Atlanticus Holdings Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
As we noted earlier, Atlanticus Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that David's performance creates value for the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Atlanticus Holdings 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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