In 2016 Doug Jamieson was appointed CEO of Associated Capital Group, Inc. (NYSE:AC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Doug Jamieson's Compensation Compare With Similar Sized Companies?
Our data indicates that Associated Capital Group, Inc. is worth US$888m, and total annual CEO compensation was reported as US$1.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$400k. 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$400m to US$1.6b, and the median CEO total compensation was US$2.5m.
Most shareholders would consider it a positive that Doug Jamieson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Associated Capital Group has changed over time.
Is Associated Capital Group, Inc. Growing?
Over the last three years Associated Capital Group, Inc. has shrunk its earnings per share by an average of 96% per year (measured with a line of best fit). Its revenue is down 9.9% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Associated Capital Group, Inc. Been A Good Investment?
Associated Capital Group, Inc. has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Associated Capital Group, Inc. is currently paying its CEO below what is normal for companies of its size.
Shareholders should note that compensation for Doug Jamieson is under the median of a group of similar sized companies. However, the earnings per share are not moving in the right direction, and the returns to shareholders could have been better. There is room for improved company performance, but we don't see the CEO pay as a big issue here. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Associated Capital Group.
If you want to buy a stock that is better than Associated Capital Group, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.