Shareholders May Be More Conservative With Affiliated Managers Group, Inc.'s (NYSE:AMG) CEO Compensation For Now

Key Insights

• Affiliated Managers Group to hold its Annual General Meeting on 22nd of May
• Salary of US$750.0k is part of CEO Jay Horgen's total remuneration
• Total compensation is 32% above industry average
• Affiliated Managers Group's EPS grew by 3.5% over the past three years while total shareholder return over the past three years was 46%

Our free stock report includes 1 warning sign investors should be aware of before investing in Affiliated Managers Group. Read for free now.

Under the guidance of CEO Jay Horgen, Affiliated Managers Group, Inc. (NYSE:AMG) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Affiliated Managers Group

Comparing Affiliated Managers Group, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Affiliated Managers Group, Inc. has a market capitalization of US$5.2b, and reported total annual CEO compensation of US$13m for the year to December 2024. That's a notable decrease of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$750k.

In comparison with other companies in the American Capital Markets industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$9.9m. Hence, we can conclude that Jay Horgen is remunerated higher than the industry median. What's more, Jay Horgen holds US$84m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$750k	US$750k	6%
Other	US$12m	US$14m	94%
Total Compensation	US$13m	US$15m	100%

On an industry level, around 11% of total compensation represents salary and 89% is other remuneration. It's interesting to note that Affiliated Managers Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Affiliated Managers Group, Inc.'s Growth

Over the past three years, Affiliated Managers Group, Inc. has seen its earnings per share (EPS) grow by 3.5% per year. In the last year, its revenue changed by just 0.1%.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Affiliated Managers Group, Inc. Been A Good Investment?

Boasting a total shareholder return of 46% over three years, Affiliated Managers Group, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Affiliated Managers Group that investors should think about before committing capital to this stock.

Switching gears from Affiliated Managers Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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