Lee Rudow has been the CEO of Transcat, Inc. (NASDAQ:TRNS) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Lee Rudow’s Compensation Compare With Similar Sized Companies?
According to our data, Transcat, Inc. has a market capitalization of US$241m, and paid its CEO total annual compensation worth US$959k over the year to March 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$380k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
So Lee Rudow is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Transcat has changed over time.
Is Transcat, Inc. Growing?
Over the last three years Transcat, Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). Its revenue is up 7.0% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Transcat, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Transcat, Inc. for providing a total return of 209% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Lee Rudow is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Transcat insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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