Does A-Mark Precious Metals, Inc.’s (NASDAQ:AMRK) CEO Pay Compare Well With Peers?
In 2005 Greg Roberts was appointed CEO of A-Mark Precious Metals, Inc. (NASDAQ:AMRK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for A-Mark Precious Metals
How Does Greg Roberts’s Compensation Compare With Similar Sized Companies?
Our data indicates that A-Mark Precious Metals, Inc. is worth US$89m, and total annual CEO compensation is US$1.0m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$520k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$301k.
It would therefore appear that A-Mark Precious Metals, Inc. pays Greg Roberts more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at A-Mark Precious Metals, below.
Is A-Mark Precious Metals, Inc. Growing?
Over the last three years A-Mark Precious Metals, Inc. has shrunk its earnings per share by an average of 73% per year. Its revenue is down -4.6% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has A-Mark Precious Metals, Inc. Been A Good Investment?
With a three year total loss of 25%, A-Mark Precious Metals, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared the total CEO remuneration paid by A-Mark Precious Metals, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying A-Mark Precious Metals shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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 editorial-team@simplywallst.com.
