Is Allied Motion Technologies Inc. (NASDAQ:AMOT) Overpaying Its CEO?

Dick Warzala became the CEO of Allied Motion Technologies Inc. (NASDAQ:AMOT) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Allied Motion Technologies

How Does Dick Warzala’s Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Allied Motion Technologies Inc. has a market cap of US$331m, and reported total annual CEO compensation of US$2.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$524k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.9m.

That means Dick Warzala receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Allied Motion Technologies has changed from year to year.

NasdaqGM:AMOT CEO Compensation, October 3rd 2019
NasdaqGM:AMOT CEO Compensation, October 3rd 2019

Is Allied Motion Technologies Inc. Growing?

Allied Motion Technologies Inc. has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is up 19% over last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Allied Motion Technologies Inc. Been A Good Investment?

Boasting a total shareholder return of 79% over three years, Allied Motion Technologies Inc. has done well by shareholders. 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.

In Summary…

Dick Warzala is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Allied Motion Technologies shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.