Albert Benchimol has been the CEO of AXIS Capital Holdings Limited (NYSE:AXS) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. 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?
Our data indicates that AXIS Capital Holdings Limited is worth US$4.6b, and total annual CEO compensation is US$7m. That’s below the compensation, last year. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$5m.
Thus we can conclude that Albert Benchimol receives more in total compensation than the median of a group of companies in the same market, and of similar size to AXIS Capital Holdings Limited. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at AXIS Capital Holdings has changed from year to year.
Is AXIS Capital Holdings Limited Growing?
On average over the last three years, AXIS Capital Holdings Limited has shrunk earnings per share by 82% each year. Its revenue is up 20% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 not done too badly by shareholders, with a total return of 7.0%, over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at AXIS Capital Holdings Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.Earnings per share have not grown in three years, and the revenue growth fails to impress us.
And while shareholder returns have been respectable, they have hardly been superb. So we think more research is needed, but we don’t think the CEO underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling AXIS Capital Holdings Limited shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.