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Shareholders May Be More Conservative With A-Mark Precious Metals, Inc.'s (NASDAQ:AMRK) CEO Compensation For Now
Under the guidance of CEO Greg Roberts, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27 October 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out the opportunities and risks within the US Diversified Financial industry.
How Does Total Compensation For Greg Roberts Compare With Other Companies In The Industry?
At the time of writing, our data shows that A-Mark Precious Metals, Inc. has a market capitalization of US$647m, and reported total annual CEO compensation of US$1.7m for the year to June 2022. We note that's a decrease of 15% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$560k.
In comparison with other companies in the industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$749k. This suggests that Greg Roberts is paid more than the median for the industry. Moreover, Greg Roberts also holds US$780k worth of A-Mark Precious Metals stock directly under their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$560k | US$560k | 34% |
Other | US$1.1m | US$1.4m | 66% |
Total Compensation | US$1.7m | US$2.0m | 100% |
Talking in terms of the industry, salary represented approximately 36% of total compensation out of all the companies we analyzed, while other remuneration made up 64% of the pie. A-Mark Precious Metals is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at A-Mark Precious Metals, Inc.'s Growth Numbers
A-Mark Precious Metals, Inc. has seen its earnings per share (EPS) increase by 230% a year over the past three years. Its revenue is up 7.2% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has A-Mark Precious Metals, Inc. Been A Good Investment?
Boasting a total shareholder return of 507% over three years, A-Mark Precious Metals, Inc. 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for A-Mark Precious Metals you should be aware of, and 2 of them make us uncomfortable.
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. 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.
About NasdaqGS:AMRK
Undervalued with adequate balance sheet.