Yahoo Finance Here's Why Artisan Partners Asset Management Inc.'s (NYSE:APAM) CEO Is Unlikely to Expect A Pay Rise This Year
Key Insights
Artisan Partners Asset Management to hold its Annual General Meeting on 14th of June
CEO Eric Colson's total compensation includes salary of US$500.0k
The total compensation is similar to the average for the industry
Over the past three years, Artisan Partners Asset Management's EPS fell by 9.5% and over the past three years, the total shareholder return was 2.1%
The anaemic share price growth at Artisan Partners Asset Management Inc. (NYSE:APAM) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. The upcoming AGM on 14th of June may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
View our latest analysis for Artisan Partners Asset Management
Comparing Artisan Partners Asset Management Inc.'s CEO Compensation With The Industry
According to our data, Artisan Partners Asset Management Inc. has a market capitalization of US$3.5b, and paid its CEO total annual compensation worth US$6.7m over the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$500k.
In comparison with other companies in the American Capital Markets industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$7.2m. This suggests that Artisan Partners Asset Management remunerates its CEO largely in line with the industry average. What's more, Eric Colson holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$500k | US$500k | 7% |
Other | US$6.2m | US$6.3m | 93% |
Total Compensation | US$6.7m | US$6.8m | 100% |
On an industry level, roughly 9% of total compensation represents salary and 91% is other remuneration. In Artisan Partners Asset Management's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Artisan Partners Asset Management Inc.'s Growth
Over the last three years, Artisan Partners Asset Management Inc. has shrunk its earnings per share by 9.5% per year. In the last year, its revenue is up 6.2%.
The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Artisan Partners Asset Management Inc. Been A Good Investment?
With a total shareholder return of 2.1% over three years, Artisan Partners Asset Management Inc. has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
In Summary...
The flat share price growth combined with the the fact that earnings have failed to grow makes us wonder whether the share price will have any further strong momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Artisan Partners Asset Management that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
