Mike Inglese became the CEO of Aircastle Limited (NYSE:AYR) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Mike Inglese's Compensation Compare With Similar Sized Companies?
Our data indicates that Aircastle Limited is worth US$1.8b, and total annual CEO compensation was reported as US$6.3m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$675k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.
As you can see, Mike Inglese is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Aircastle Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Aircastle has changed over time.
Is Aircastle Limited Growing?
On average over the last three years, Aircastle Limited has grown earnings per share (EPS) by 24% each year (using a line of best fit). Its revenue is up 13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Aircastle Limited Been A Good Investment?
Boasting a total shareholder return of 36% over three years, Aircastle Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Aircastle Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aircastle.
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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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. Thank you for reading.