Shareholders May Be Wary Of Increasing Silvercrest Asset Management Group Inc.'s (NASDAQ:SAMG) CEO Compensation Package
Key Insights
- Silvercrest Asset Management Group's Annual General Meeting to take place on 4th of June
- Total pay for CEO Rick Hough includes US$900.0k salary
- Total compensation is 95% above industry average
- Silvercrest Asset Management Group's three-year loss to shareholders was 22% while its EPS was down 22% over the past three years
Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) has not performed well recently and CEO Rick Hough will probably need to up their game. At the upcoming AGM on 4th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for Silvercrest Asset Management Group
Comparing Silvercrest Asset Management Group Inc.'s CEO Compensation With The Industry
Our data indicates that Silvercrest Asset Management Group Inc. has a market capitalization of US$195m, and total annual CEO compensation was reported as US$4.1m for the year to December 2024. We note that's a decrease of 28% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$900k.
In comparison with other companies in the American Capital Markets industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$2.1m. Hence, we can conclude that Rick Hough is remunerated higher than the industry median. Moreover, Rick Hough also holds US$137k worth of Silvercrest Asset Management Group stock directly under their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$900k | US$875k | 22% |
| Other | US$3.2m | US$4.8m | 78% |
| Total Compensation | US$4.1m | US$5.6m | 100% |
Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. According to our research, Silvercrest Asset Management Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Silvercrest Asset Management Group Inc.'s Growth Numbers
Silvercrest Asset Management Group Inc. has reduced its earnings per share by 22% a year over the last three years. In the last year, its revenue is up 5.5%.
Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Silvercrest Asset Management Group Inc. Been A Good Investment?
Given the total shareholder loss of 22% over three years, many shareholders in Silvercrest Asset Management Group Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Silvercrest Asset Management Group.
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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.