A-Mark Precious Metals, Inc.'s (NASDAQ:AMRK) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• A-Mark Precious Metals to hold its Annual General Meeting on 15th of November
• CEO Greg Roberts' total compensation includes salary of US$560.0k
• The total compensation is similar to the average for the industry
• A-Mark Precious Metals' total shareholder return over the past three years was 85% while its EPS grew by 45% over the past three years

The performance at A-Mark Precious Metals, Inc. (NASDAQ:AMRK) has been quite strong recently and CEO Greg Roberts has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 15th of November. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for A-Mark Precious Metals

How Does Total Compensation For Greg Roberts Compare With Other Companies In The Industry?

According to our data, A-Mark Precious Metals, Inc. has a market capitalization of US$619m, and paid its CEO total annual compensation worth US$1.5m over the year to June 2023. That's a notable decrease of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$560k.

On comparing similar companies from the American Diversified Financial industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$1.6m. So it looks like A-Mark Precious Metals compensates Greg Roberts in line with the median for the industry. What's more, Greg Roberts holds US$693k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$560k	US$560k	39%
Other	US$891k	US$1.1m	61%
Total Compensation	US$1.5m	US$1.7m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. A-Mark Precious Metals pays out 39% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at A-Mark Precious Metals, Inc.'s Growth Numbers

A-Mark Precious Metals, Inc.'s earnings per share (EPS) grew 45% per year over the last three years. It achieved revenue growth of 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has A-Mark Precious Metals, Inc. Been A Good Investment?

We think that the total shareholder return of 85%, over three years, would leave most A-Mark Precious Metals, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for A-Mark Precious Metals (2 make us uncomfortable!) that you should be aware of before investing here.

Important note: A-Mark Precious Metals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.