Here's Why Shareholders May Consider Paying Apollo Global Management, Inc.'s (NYSE:APO) CEO A Little More

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editorial-team@simplywallst.com (Simply Wall St)

Sat, Sep 30, 2023, 6:20 AM 4 min read

Apollo Global Management to hold its Annual General Meeting on 6th of October
CEO Marc Rowan's total compensation includes salary of US$100.0k
The total compensation is 97% less than the average for the industry
Apollo Global Management's total shareholder return over the past three years was 108% while its EPS was down 53% over the past three years

Shareholders will probably not be disappointed by the robust results at Apollo Global Management, Inc. (NYSE:APO) recently and they will be keeping this in mind as they go into the AGM on 6th of October. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Apollo Global Management

How Does Total Compensation For Marc Rowan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Apollo Global Management, Inc. has a market capitalization of US$52b, and reported total annual CEO compensation of US$310k for the year to December 2022. 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.

On comparing similar companies in the American Diversified Financial industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$10.0m. In other words, Apollo Global Management pays its CEO lower than the industry median. What's more, Marc Rowan holds US$2.5b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	US$100k	US$100k	32%
Other	US$210k	US$202k	68%
Total Compensation	US$310k	US$302k	100%

On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. It's interesting to note that Apollo Global Management pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation — NYSE:APO CEO Compensation September 30th 2023

A Look at Apollo Global Management, Inc.'s Growth Numbers

Over the last three years, Apollo Global Management, Inc. has shrunk its earnings per share by 53% per year. It achieved revenue growth of 405% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Apollo Global Management, Inc. Been A Good Investment?

We think that the total shareholder return of 108%, over three years, would leave most Apollo Global Management, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. 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 pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Apollo Global Management you should be aware of, and 1 of them is concerning.

Switching gears from Apollo Global Management, 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.

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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.