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Should You Worry About AgroFresh Solutions, Inc.'s (NASDAQ:AGFS) CEO Salary Level?

Simply Wall St

Jordi Ferre has been the CEO of AgroFresh Solutions, Inc. (NASDAQ:AGFS) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for AgroFresh Solutions

How Does Jordi Ferre's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that AgroFresh Solutions, Inc. has a market cap of US$166m, and is paying total annual CEO compensation of US$2.1m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$532k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.0m.

It would therefore appear that AgroFresh Solutions, Inc. pays Jordi Ferre more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 AgroFresh Solutions has changed over time.

NasdaqGS:AGFS CEO Compensation, April 17th 2019

Is AgroFresh Solutions, Inc. Growing?

Over the last three years AgroFresh Solutions, Inc. has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). Its revenue is up 9.0% over last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has AgroFresh Solutions, Inc. Been A Good Investment?

Given the total loss of 50% over three years, many shareholders in AgroFresh Solutions, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by AgroFresh Solutions, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if AgroFresh Solutions insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.