Eric McAfee has been the CEO of Aemetis Inc (NASDAQ:AMTX) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Eric McAfee’s Compensation Compare With Similar Sized Companies?
According to our data, Aemetis Inc has a market capitalization of US$16m, and pays its CEO total annual compensation worth US$350k. Notably, that’s an increase of 40% over the year before. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$293k.
So Eric McAfee 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 Aemetis, below.
Is Aemetis Inc Growing?
Aemetis Inc has reduced its earnings per share by an average of 10% a year, over the last three years. In the last year, its revenue is up 15%.
Sadly for shareholders, earnings per share are actually down, over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Aemetis Inc Been A Good Investment?
Given the total loss of 70% over three years, many shareholders in Aemetis Inc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Eric McAfee is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. This doesn’t look great when you consider CEO remuneration is up on last year. Few would argue that it’s wise for the company to pay any more, before returns improve.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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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 firstname.lastname@example.org.