Atlas Engineered Products Ltd.'s (CVE:AEP) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Atlas Engineered Products to hold its Annual General Meeting on 2nd of November
• Salary of CA$350.0k is part of CEO Mohammad Abassi's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Atlas Engineered Products' EPS grew by 70% and over the past three years, the total shareholder return was 400%

It would be hard to discount the role that CEO Mohammad Abassi has played in delivering the impressive results at Atlas Engineered Products Ltd. (CVE:AEP) recently. Coming up to the next AGM on 2nd of November, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Atlas Engineered Products

Comparing Atlas Engineered Products Ltd.'s CEO Compensation With The Industry

Our data indicates that Atlas Engineered Products Ltd. has a market capitalization of CA$71m, and total annual CEO compensation was reported as CA$623k for the year to December 2022. Notably, that's an increase of 85% over the year before. In particular, the salary of CA$350.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Canadian Forestry industry with market capitalizations below CA$277m, we found that the median total CEO compensation was CA$872k. This suggests that Atlas Engineered Products remunerates its CEO largely in line with the industry average. What's more, Mohammad Abassi holds CA$7.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	CA$350k	CA$288k	56%
Other	CA$273k	CA$50k	44%
Total Compensation	CA$623k	CA$338k	100%

Talking in terms of the industry, salary represented approximately 32% of total compensation out of all the companies we analyzed, while other remuneration made up 68% of the pie. Atlas Engineered Products is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Atlas Engineered Products Ltd.'s Growth

Over the past three years, Atlas Engineered Products Ltd. has seen its earnings per share (EPS) grow by 70% per year. It saw its revenue drop 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Atlas Engineered Products Ltd. Been A Good Investment?

Boasting a total shareholder return of 400% over three years, Atlas Engineered Products Ltd. 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Atlas Engineered Products that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.