What Can We Learn About Silvercrest Asset Management Group's (NASDAQ:SAMG) CEO Compensation?
Rick Hough became the CEO of Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) in 2013, 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 Silvercrest Asset Management Group.
View our latest analysis for Silvercrest Asset Management Group
How Does Total Compensation For Rick Hough Compare With Other Companies In The Industry?
At the time of writing, our data shows that Silvercrest Asset Management Group Inc. has a market capitalization of US$186m, and reported total annual CEO compensation of US$2.5m for the year to December 2019. That's a slightly lower by 7.0% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$700k.
For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$925k. Hence, we can conclude that Rick Hough is remunerated higher than the industry median. What's more, Rick Hough holds US$120k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$700k | US$700k | 28% |
Other | US$1.8m | US$2.0m | 72% |
Total Compensation | US$2.5m | US$2.7m | 100% |
On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. According to our research, Silvercrest Asset Management Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Silvercrest Asset Management Group Inc.'s Growth
Silvercrest Asset Management Group Inc.'s earnings per share (EPS) grew 15% per year over the last three years. It achieved revenue growth of 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Silvercrest Asset Management Group Inc. Been A Good Investment?
Silvercrest Asset Management Group Inc. has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
As we touched on above, Silvercrest Asset Management Group Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed us with its EPS growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Silvercrest Asset Management Group that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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