Larry Mendelsohn has been the CEO of Great Ajax Corp. (NYSE:AJX) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Larry Mendelsohn's Compensation Compare With Similar Sized Companies?
Our data indicates that Great Ajax Corp. is worth US$308m, and total annual CEO compensation was reported as US$109k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
Most shareholders would consider it a positive that Larry Mendelsohn takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Great Ajax, below.
Is Great Ajax Corp. Growing?
Great Ajax Corp. has reduced its earnings per share by an average of 1.3% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 13% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. 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 Great Ajax Corp. Been A Good Investment?
Most shareholders would probably be pleased with Great Ajax Corp. for providing a total return of 54% 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.
Great Ajax Corp. is currently paying its CEO below what is normal for companies of its size.
Larry Mendelsohn is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. Shareholders may want to check for free if Great Ajax insiders are buying or selling shares.
If you want to buy a stock that is better than Great Ajax, this free list of high return, low debt companies is a great place to look.
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