Stock Analysis

Here's Why Apollo Global Management, Inc.'s (NYSE:APO) CEO May Deserve A Raise

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NYSE:APO
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Shareholders will be pleased by the impressive results for Apollo Global Management, Inc. (NYSE:APO) recently and CEO Marc Rowan has played a key role. At the upcoming AGM on 07 October 2022, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Apollo Global Management

How Does Total Compensation For Marc Rowan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Apollo Global Management, Inc. has a market capitalization of US$27b, and reported total annual CEO compensation of US$302k for the year to December 2021. That's just a smallish increase of 7.8% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$100k.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$2.7m. This suggests that Marc Rowan is paid below the industry median. Moreover, Marc Rowan also holds US$1.3b worth of Apollo Global Management stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary US$100k US$100k 33%
Other US$202k US$180k 67%
Total CompensationUS$302k US$280k100%

On an industry level, roughly 36% of total compensation represents salary and 64% is other remuneration. Apollo Global Management is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NYSE:APO CEO Compensation October 2nd 2022

Apollo Global Management, Inc.'s Growth

Over the past three years, Apollo Global Management, Inc. has seen its earnings per share (EPS) grow by 12% per year. In the last year, its revenue is down 9.6%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Apollo Global Management, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Apollo Global Management, Inc. for providing a total return of 39% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Apollo Global Management you should be aware of, and 1 of them makes us a bit uncomfortable.

Important note: Apollo Global Management 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.

Valuation is complex, but we're helping make it simple.

Find out whether Apollo Global Management is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About NYSE:APO

Apollo Global Management

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity and real estate markets.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth1
Past Performance0
Financial Health2
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Second-rate dividend payer and slightly overvalued.