Key Insights

• Apollo Global Management's Annual General Meeting to take place on 24th of June
• CEO Marc Rowan's total compensation includes salary of US$100.0k
• The overall pay is 97% below the industry average
• Apollo Global Management's EPS grew by 6.2% over the past three years while total shareholder return over the past three years was 116%

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 24th of June. 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. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

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$66b, and total annual CEO compensation was reported as US$321k for the year to December 2023. That's just a smallish increase of 3.5% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$100k.

In comparison with other companies in the American Diversified Financial industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. In other words, Apollo Global Management pays its CEO lower than the industry median. What's more, Marc Rowan holds US$3.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$100k	US$100k	31%
Other	US$221k	US$210k	69%
Total Compensation	US$321k	US$310k	100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. It's interesting to note that Apollo Global Management pays out a greater portion of remuneration through salary, compared to the 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 seen its earnings per share (EPS) increase by 6.2% a year over the past three years. Its revenue is up 120% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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?

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. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well.

Arguably, business quality is much more important than CEO compensation levels.

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.