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Hilton Howell has been the CEO of Atlantic American Corporation (NASDAQ:AAME) since 1995. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Hilton Howell's Compensation Compare With Similar Sized Companies?
According to our data, Atlantic American Corporation has a market capitalization of US$50m, and pays its CEO total annual compensation worth US$3.2m. (This figure is for the year to December 2018). That's a notable increase of 203% on last year. While we always look at total compensation first, we note that the salary component is less, at US$500k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.
Thus we can conclude that Hilton Howell receives more in total compensation than the median of a group of companies in the same market, and of similar size to Atlantic American Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Atlantic American has changed over time.
Is Atlantic American Corporation Growing?
Over the last three years Atlantic American Corporation has grown its earnings per share (EPS) by an average of 7.8% per year (using a line of best fit). It achieved revenue growth of 13% over the last year.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Atlantic American Corporation Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Atlantic American Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Atlantic American Corporation, 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. So shareholders might not feel great about the fact that CEO pay increased on last year. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Atlantic American shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.com. 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.