In 2016 Gary Kain was appointed CEO of AGNC Investment Corp. (NASDAQ:AGNC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for AGNC Investment
How Does Gary Kain's Compensation Compare With Similar Sized Companies?
According to our data, AGNC Investment Corp. has a market capitalization of US$6.3b, and paid its CEO total annual compensation worth US$16m over the year to December 2019. We note that's an increase of 10% above last year. While we always look at total compensation first, we note that the salary component is less, at US$975k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$7.3m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of AGNC Investment. Speaking on an industry level, we can see that nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. It's interesting to note that AGNC Investment allocates a smaller portion of compensation to salary in comparison to the broader industry.
As you can see, Gary Kain is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AGNC Investment Corp. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. The graphic below shows how CEO compensation at AGNC Investment has changed from year to year.
Is AGNC Investment Corp. Growing?
AGNC Investment Corp. has reduced its earnings per share by an average of 70% a year, over the last three years (measured with a line of best fit). Its revenue is up 237% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has AGNC Investment Corp. Been A Good Investment?
Given the total loss of 19% over three years, many shareholders in AGNC Investment Corp. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at AGNC Investment Corp. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. This doesn't look great when you consider CEO remuneration is up on last year. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. On another note, we've spotted 3 warning signs for AGNC Investment that investors should look into moving forward.
If you want to buy a stock that is better than AGNC Investment, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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How Much Did AGNC Investment Corp.'s (NASDAQ:AGNC) CEO Pocket Last Year? - Yahoo Finance
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