【why doesn't my wisteria bloom】Is Agrimin Limited (ASX:AMN) Excessively Paying Its CEO?

发布时间：2024-09-29 12:31:17 来源：what is radon testing in apartments 作者：Encyclopedia

Mark Savich has been the CEO of Agrimin Limited (

ASX:AMN

) since 2015. This why doesn't my wisteria bloomanalysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Agrimin

How Does Mark Savich’s Compensation Compare With Similar Sized Companies?

According to our data, Agrimin Limited has a market capitalization of AU$116m, and pays its CEO total annual compensation worth AU$248k. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at AU$150k. We examined a group of similar sized companies, with market capitalizations of below AU$284m. The median CEO compensation in that group is AU$368k.

A first glance this seems like a real positive for shareholders, since Mark Savich is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Agrimin, below.

ASX:AMN CEO Compensation January 2nd 19

Is Agrimin Limited Growing?

Over the last three years Agrimin Limited has grown its earnings per share (EPS) by an average of 32% per year. It achieved revenue growth of 326% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.

We don’t have analyst forecasts, but shareholders might want to examine

this detailed historical graph

of earnings, revenue and cash flow.

Has Agrimin Limited Been A Good Investment?

I think that the total shareholder return of 269%, over three years, would leave most Agrimin Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

It appears that Agrimin Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Mark Savich deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like

this free visualization of insider trading at Agrimin.

Story continues

Or you might prefer

this

data-rich interactive visualization

of historic revenue and earnings

.

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

[email protected]

.

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