Jack Bendheim became the CEO of Phibro Animal Health Corporation (NASDAQ:PAHC) in 2014. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jack Bendheim’s Compensation Compare With Similar Sized Companies?
Our data indicates that Phibro Animal Health Corporation is worth US$1.4b, and total annual CEO compensation is US$3.3m. (This number is for the twelve months until 2018). That’s a modest increase of 3.7% on the prior year year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$2.1m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.4m.
So Jack Bendheim receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Phibro Animal Health has changed from year to year.
Is Phibro Animal Health Corporation Growing?
On average over the last three years, Phibro Animal Health Corporation has shrunk earnings per share by 6.8% each year. Its revenue is up 7.4% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Phibro Animal Health Corporation Been A Good Investment?
Phibro Animal Health Corporation has not done too badly by shareholders, with a total return of 5.9%, 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.
Jack Bendheim is paid around the same as most CEOs of similar 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’re not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Phibro Animal Health.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.