Eric McAfee has been the CEO of Aemetis, Inc. (NASDAQ:AMTX) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Eric McAfee's Compensation Compare With Similar Sized Companies?
Our data indicates that Aemetis, Inc. is worth US$23m, and total annual CEO compensation is US$350k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$310k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$452k.
So Eric McAfee is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Aemetis has changed from year to year.
Is Aemetis, Inc. Growing?
Over the last three years Aemetis, Inc. has shrunk its earnings per share by an average of 18% per year (measured with a line of best fit). In the last year, its revenue is up 5.4%.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Aemetis, Inc. Been A Good Investment?
Given the total loss of 52% over three years, many shareholders in Aemetis, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Eric McAfee is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aemetis (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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