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Jack Bendheim has been the CEO of Phibro Animal Health Corporation (NASDAQ:PAHC) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jack Bendheim's Compensation Compare With Similar Sized Companies?
According to our data, Phibro Animal Health Corporation has a market capitalization of US$1.2b, and pays its CEO total annual compensation worth US$3.3m. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$2.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.0m.
So Jack Bendheim is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Phibro Animal Health, below.
Is Phibro Animal Health Corporation Growing?
Phibro Animal Health Corporation has reduced its earnings per share by an average of 6.0% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 4.1%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Phibro Animal Health Corporation Been A Good Investment?
Most shareholders would probably be pleased with Phibro Animal Health Corporation for providing a total return of 66% over three years. 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.
Jack Bendheim is paid around what is normal the leaders of comparable size companies.
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Phibro Animal Health.
If you want to buy a stock that is better than Phibro Animal Health, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.