Jack Bendheim became the CEO of Phibro Animal Health Corporation (NASDAQ:PAHC) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Jack Bendheim’s Compensation Compare With Similar Sized Companies?
Our data indicates that Phibro Animal Health Corporation is worth US$1.3b, and total annual CEO compensation is US$3.3m. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, 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 total compensation was US$3.4m.
So Jack Bendheim is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Phibro Animal Health, below.
Is Phibro Animal Health Corporation Growing?
Phibro Animal Health Corporation has reduced its earnings per share by an average of 7.5% a year, over the last three years (measured with a line of best fit). Its revenue is up 7.0% over last year.
Unfortunately, earnings per share have trended lower over the last 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. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Phibro Animal Health Corporation Been A Good Investment?
Phibro Animal Health Corporation has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Jack Bendheim is paid around what is normal the leaders of comparable size companies.
We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn’t say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. So you may want to check if insiders are buying Phibro Animal Health shares with their own money (free access).
If you want to buy a stock that is better than Phibro Animal Health, this free list of high return, low debt companies is a great place to look.
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