We Think Shareholders Are Less Likely To Approve A Large Pay Rise For A-Mark Precious Metals, Inc.'s (NASDAQ:AMRK) CEO For Now

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Under the guidance of CEO Greg Roberts, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27 October 2022. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for A-Mark Precious Metals

Comparing A-Mark Precious Metals, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that A-Mark Precious Metals, Inc. has a market capitalization of US$647m, and reported total annual CEO compensation of US$1.7m for the year to June 2022. Notably, that's a decrease of 15% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$560k.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$749k. Accordingly, our analysis reveals that A-Mark Precious Metals, Inc. pays Greg Roberts north of the industry median. Furthermore, Greg Roberts directly owns US$780k worth of shares in the company.

Component

2022

2021

Proportion (2022)

Salary

US$560k

US$560k

34%

Other

US$1.1m

US$1.4m

66%

Total Compensation

US$1.7m

US$2.0m

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, A-Mark Precious Metals more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

A Look at A-Mark Precious Metals, Inc.'s Growth Numbers

Over the past three years, A-Mark Precious Metals, Inc. has seen its earnings per share (EPS) grow by 230% per year. Its revenue is up 7.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has A-Mark Precious Metals, Inc. Been A Good Investment?

Most shareholders would probably be pleased with A-Mark Precious Metals, Inc. for providing a total return of 507% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for A-Mark Precious Metals you should be aware of, and 2 of them are potentially serious.

Important note: A-Mark Precious Metals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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