In 2015 Eileen Drake was appointed CEO of Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD). 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 - 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 Eileen Drake's Compensation Compare With Similar Sized Companies?
Our data indicates that Aerojet Rocketdyne Holdings, Inc. is worth US$4.2b, and total annual CEO compensation was reported as US$5.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$806k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.0m.
That means Eileen Drake receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Aerojet Rocketdyne Holdings has changed over time.
Is Aerojet Rocketdyne Holdings, Inc. Growing?
Over the last three years Aerojet Rocketdyne Holdings, Inc. has grown its earnings per share (EPS) by an average of 82% per year (using a line of best fit). Its revenue is down 4.5% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Aerojet Rocketdyne Holdings, Inc. Been A Good Investment?
Boasting a total shareholder return of 196% over three years, Aerojet Rocketdyne Holdings, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Eileen Drake is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aerojet Rocketdyne Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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