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Should You Worry About Phibro Animal Health Corporation’s (NASDAQ:PAHC) CEO Pay?

Jack Bendheim became the CEO of Phibro Animal Health Corporation (NASDAQ:PAHC) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Phibro Animal Health

How Does Jack Bendheim’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Phibro Animal Health Corporation has a market cap of US$1.5b, and is paying total annual CEO compensation of US$3.3m. That’s just a smallish increase of 3.7% on last year. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3.5m.

That means Jack Bendheim receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Phibro Animal Health has changed over time.

NasdaqGM:PAHC CEO Compensation November 17th 18

Is Phibro Animal Health Corporation Growing?

On average over the last three years, Phibro Animal Health Corporation has shrunk earnings per share by 6.8% each year. It achieved revenue growth of 7.4% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Phibro Animal Health Corporation Been A Good Investment?

With a total shareholder return of 16% over three years, Phibro Animal Health Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Jack Bendheim is paid around what is normal the leaders of comparable size companies.

The company isn’t growing earnings per share, and nor have the total returns inspired us. We wouldn’t say the CEO pay is too high, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Phibro Animal Health Corporation.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.