Shareholders may be more conservative with A-Mark Precious Metals, Inc. (NASDAQ: AMRK) CEO compensation for now
Under the leadership of CEO Greg Roberts, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) has performed relatively well recently. This is something shareholders will keep in mind when voting on corporate resolutions such as executive compensation at the upcoming annual general meeting on October 27, 2022. However, some shareholders may still be hesitant to being overly generous with CEO compensation.
How does Greg Roberts’ total compensation compare to other companies in the industry?
At the time of writing, our data shows that A-Mark Precious Metals, Inc. has a market capitalization of US$647 million and reported total annual CEO compensation of US$1.7 million for the year through June 2022. We note that this is a 15% decrease from last year. Although we always look at total compensation first, our analysis shows that the salary component is lower, at $560,000.
In comparison with other companies in the industry with market caps ranging from US$400 million to US$1.6 billion, the median reported CEO total compensation was US$749,000. This suggests that Greg Roberts is paid more than the industry median. Additionally, Greg Roberts also owns US$780,000 worth of A-Mark Precious Metals stock directly under his own name.
|Making up||2022||2021||Percentage (2022)|
|Other||$1.1 million||$1.4 million||66%|
|The total compensation||$1.7 million||US$2.0m||100%|
In terms of industry, salary made up about 36% of total compensation for all the companies we analyzed, while other compensation made up 64% of the pie. A-Mark Precious Metals broadly mirrors the industry average for a salary’s share of total compensation. If non-salary compensation dominates total compensation, it is an indicator that the executive’s salary is linked to the performance of the company.
A look at the growth numbers for A-Mark Precious Metals, Inc.
A-Mark Precious Metals, Inc. has seen its earnings per share (EPS) increase 230% annually over the past three years. Its turnover is up 7.2% compared to last year.
This demonstrates that the company has recently improved and is good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. In the future you might want to check this free visual report on analyst forecasts for future business income..
Was A-Mark Precious Metals, Inc. a good investment?
With a three-year total shareholder return of 507%, A-Mark Precious Metals, Inc. has performed well with shareholders. So they might not be worried at all if the CEO were to be paid more than is normal for companies of the same size.
The company’s decent performance might have made most shareholders happy, perhaps making CEO compensation the least of the concerns to be discussed at the next AGM. However, if the board proposes to increase compensation, some shareholders might have questions given that the CEO is already better paid than the industry.
We can learn a lot about a company by studying its CEO compensation trends, as well as looking at other aspects of the company. In our study, we found 4 warning signs for A-Mark Precious Metals you should know, and 2 of them make us uncomfortable.
Sure, you might find a fantastic investment by looking at a different set of stocks. So take a look at this free list of interesting companies.
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Find out if A-Mark Precious Metals is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.