Yahoo Finance Here's Why Shareholders May Consider Paying Apollo Global Management, Inc.'s (NYSE:APO) CEO A Little More
Key Insights
Apollo Global Management's Annual General Meeting to take place on 24th of June
Salary of US$100.0k is part of CEO Marc Rowan's total remuneration
Total compensation is 97% below industry average
Over the past three years, Apollo Global Management's EPS grew by 6.2% and over the past three years, the total shareholder return was 116%
Shareholders will be pleased by the robust performance of Apollo Global Management, Inc. (NYSE:APO) recently and this will be kept in mind in the upcoming AGM on 24th of June. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.
View our latest analysis for Apollo Global Management
How Does Total Compensation For Marc Rowan Compare With Other Companies In The Industry?
According to our data, Apollo Global Management, Inc. has a market capitalization of US$66b, and paid its CEO total annual compensation worth US$321k over the year to December 2023. That's just a smallish increase of 3.5% on last year. 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 American Diversified Financial industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. Accordingly, Apollo Global Management pays its CEO under the industry median. Furthermore, Marc Rowan directly owns US$3.3b worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$100k | US$100k | 31% |
Other | US$221k | US$210k | 69% |
Total Compensation | US$321k | US$310k | 100% |
On an industry level, around 16% of total compensation represents salary and 84% 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. 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 6.2% a year over the past three years. In the last year, its revenue is up 120%.
We like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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?
Most shareholders would probably be pleased with Apollo Global Management, Inc. for providing a total return of 116% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
While the company seems to be headed in the right direction performance-wise, there's always room for improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Apollo Global Management that you should be aware of before investing.
Important note: Apollo Global Management 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.
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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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