Yahoo Finance Why We Think Shareholders May Be Considering Bumping Up Apollo Global Management, Inc.'s (NYSE:APO) CEO Compensation
Shareholders will be pleased by the impressive results for Apollo Global Management, Inc. (NYSE:APO) recently and CEO Marc Rowan has played a key role. This would be kept in mind at the upcoming AGM on 07 October 2022 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
Check out our latest analysis for Apollo Global Management
How Does Total Compensation For Marc Rowan Compare With Other Companies In The Industry?
Our data indicates that Apollo Global Management, Inc. has a market capitalization of US$27b, and total annual CEO compensation was reported as US$302k for the year to December 2021. That's just a smallish increase of 7.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$100k.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$2.7m. Accordingly, Apollo Global Management pays its CEO under the industry median. What's more, Marc Rowan holds US$1.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2021 | 2020 | Proportion (2021) |
Salary | US$100k | US$100k | 33% |
Other | US$202k | US$180k | 67% |
Total Compensation | US$302k | US$280k | 100% |
Talking in terms of the industry, salary represented approximately 36% of total compensation out of all the companies we analyzed, while other remuneration made up 64% of the pie. Although there is a difference in how total compensation is set, Apollo Global Management more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Apollo Global Management, Inc.'s Growth Numbers
Apollo Global Management, Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. It saw its revenue drop 9.6% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Apollo Global Management, Inc. Been A Good Investment?
We think that the total shareholder return of 39%, over three years, would leave most Apollo Global Management, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Apollo Global Management (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the 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.
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