Yahoo Finance Our View On Apollo Global Management's (NYSE:APO) CEO Pay
This article will reflect on the compensation paid to Leon Black who has served as CEO of Apollo Global Management, Inc. (NYSE:APO) since 1990. This analysis will also assess whether Apollo Global Management pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Apollo Global Management
Comparing Apollo Global Management, Inc.'s CEO Compensation With the industry
Our data indicates that Apollo Global Management, Inc. has a market capitalization of US$20b, and total annual CEO compensation was reported as US$260k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued 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$13m. In other words, Apollo Global Management pays its CEO lower than the industry median. What's more, Leon Black holds US$493m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$100k | US$100k | 38% |
Other | US$160k | US$153k | 62% |
Total Compensation | US$260k | US$253k | 100% |
On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. According to our research, Apollo Global Management has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Apollo Global Management, Inc.'s Growth Numbers
Apollo Global Management, Inc. has reduced its earnings per share by 48% a year over the last three years. It saw its revenue drop 6.6% over the last year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 101%, over three years, would leave most Apollo Global Management, Inc. shareholders smiling. 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.
To Conclude...
As previously discussed, Leon is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. And while EPS growth is negative, shareholder returns have been healthy recently. So, while it would be nice to have better EPS growth, our analysis suggests CEO compensation is quite modest.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for Apollo Global Management (of which 2 make us uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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