This article will reflect on the compensation paid to Brent Kelton who has served as CEO of Ameri Holdings, Inc. (NASDAQ:AMRH) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Brent Kelton Compare With Other Companies In The Industry?
Our data indicates that Ameri Holdings, Inc. has a market capitalization of US$8.1m, and total annual CEO compensation was reported as US$250k for the year to December 2019. That's a notable decrease of 29% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$250k.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$349k. From this we gather that Brent Kelton is paid around the median for CEOs in the industry. Moreover, Brent Kelton also holds US$61k worth of Ameri Holdings stock directly under their own name.
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. On a company level, Ameri Holdings prefers to reward its CEO through a salary, opting not to pay Brent Kelton through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Ameri Holdings, Inc.'s Growth
Ameri Holdings, Inc.'s earnings per share (EPS) grew 35% per year over the last three years. It saw its revenue drop 15% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Ameri Holdings, Inc. Been A Good Investment?
With a three year total loss of 99% for the shareholders, Ameri Holdings, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
Ameri Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Brent is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Ameri Holdings (4 make us uncomfortable!) that you should be aware of before investing here.
Switching gears from Ameri Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
This article by Simply Wall St is general in nature. 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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