Does AMREP's (NYSE:AXR) CEO Salary Compare Well With Industry Peers?

By
Simply Wall St
Published
November 20, 2020
NYSE:AXR

Chris Vitale has been the CEO of AMREP Corporation (NYSE:AXR) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether AMREP pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for AMREP

How Does Total Compensation For Chris Vitale Compare With Other Companies In The Industry?

Our data indicates that AMREP Corporation has a market capitalization of US$46m, and total annual CEO compensation was reported as US$436k for the year to April 2020. That's a notable decrease of 12% on last year. Notably, the salary which is US$325.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$775k. That is to say, Chris Vitale is paid under the industry median. Moreover, Chris Vitale also holds US$481k worth of AMREP stock directly under their own name.

Component20202019Proportion (2020)
Salary US$325k US$318k 74%
Other US$111k US$177k 26%
Total CompensationUS$436k US$495k100%

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. According to our research, AMREP has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
NYSE:AXR CEO Compensation November 20th 2020

A Look at AMREP Corporation's Growth Numbers

Over the last three years, AMREP Corporation has shrunk its earnings per share by 43% per year. It achieved revenue growth of 37% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AMREP Corporation Been A Good Investment?

With a three year total loss of 13% for the shareholders, AMREP Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Chris is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But shareholder returns and EPS growth over the past three years are negative, which is cause for concern. Conversely, revenues are increasing at a healthy pace, recently. Though we believe Chris is modestly compensated, shareholders might want to see positive shareholder returns before agreeing compensation should be raised.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for AMREP that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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