In 2016 Doug Jamieson was appointed CEO of Associated Capital Group, Inc. (NYSE:AC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Doug Jamieson's Compensation Compare With Similar Sized Companies?
According to our data, Associated Capital Group, Inc. has a market capitalization of US$1.3b, and paid its CEO total annual compensation worth US$1.6m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$400k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.8m.
Most shareholders would consider it a positive that Doug Jamieson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Associated Capital Group has changed over time.
Is Associated Capital Group, Inc. Growing?
Over the last three years Associated Capital Group, Inc. has shrunk its earnings per share by an average of 96% per year (measured with a line of best fit). It saw its revenue drop 9.9% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Associated Capital Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 64% over three years, Associated Capital Group, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Associated Capital Group, Inc. pays its CEO less than similar sized companies.
Doug Jamieson receives relatively low remuneration compared to similar sized companies. And while the company isn't growing earnings per share, total returns have been pleasing. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Associated Capital Group shares (free trial).
If you want to buy a stock that is better than Associated Capital Group, this free list of high return, low debt companies is a great place to look.
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