George Sakellaris has been the CEO of Ameresco, Inc. (NYSE:AMRC) since 2000. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does George Sakellaris's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Ameresco, Inc. has a market cap of US$823m, and reported total annual CEO compensation of US$1.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$733k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.6m.
A first glance this seems like a real positive for shareholders, since George Sakellaris is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Ameresco, below.
Is Ameresco, Inc. Growing?
Over the last three years Ameresco, Inc. has grown its earnings per share (EPS) by an average of 39% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ameresco, Inc. Been A Good Investment?
I think that the total shareholder return of 207%, over three years, would leave most Ameresco, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Ameresco, Inc. pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that George Sakellaris deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ameresco.
If you want to buy a stock that is better than Ameresco, this free list of high return, low debt companies is a great place to look.
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