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Albert Benchimol has been the CEO of AXIS Capital Holdings Limited (NYSE:AXS) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Albert Benchimol’s Compensation Compare With Similar Sized Companies?
According to our data, AXIS Capital Holdings Limited has a market capitalization of US$4.9b, and pays its CEO total annual compensation worth US$7.8m. (This number is for the twelve months until December 2018). That’s a fairly small increase of 7.8% on year before. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
So Albert Benchimol is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at AXIS Capital Holdings, below.
Is AXIS Capital Holdings Limited Growing?
AXIS Capital Holdings Limited has reduced its earnings per share by an average of 72% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 5.5% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has AXIS Capital Holdings Limited Been A Good Investment?
AXIS Capital Holdings Limited has served shareholders reasonably well, with a total return of 15% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Albert Benchimol is paid around what is normal the leaders of comparable size companies.
We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. We do not think the CEO pay is a problem, but we’d venture the company should look to improve its business metrics (and share price) before paying any more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AXIS Capital Holdings.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.