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Eileen Drake became the CEO of Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Aerojet Rocketdyne Holdings.

Check out our latest analysis for Aerojet Rocketdyne Holdings

How Does Total Compensation For Eileen Drake Compare With Other Companies In The Industry?

According to our data, Aerojet Rocketdyne Holdings, Inc. has a market capitalization of US$3.0b, and paid its CEO total annual compensation worth US$7.3m over the year to December 2019. Notably, that's an increase of 31% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$862k.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$8.0m. This suggests that Aerojet Rocketdyne Holdings remunerates its CEO largely in line with the industry average. Moreover, Eileen Drake also holds US$15m worth of Aerojet Rocketdyne Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 18% of total compensation represents salary and 82% is other remuneration. Aerojet Rocketdyne Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Aerojet Rocketdyne Holdings, Inc.'s Growth Numbers

Aerojet Rocketdyne Holdings, Inc. has seen its earnings per share (EPS) increase by 84% a year over the past three years. It achieved revenue growth of 3.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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.