Here's Why It's Unlikely That Allient Inc.'s (NASDAQ:ALNT) CEO Will See A Pay Rise This Year

Key Insights

• Allient will host its Annual General Meeting on 7th of May
• Salary of US$707.2k is part of CEO Dick Warzala's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Allient's EPS fell by 23% and over the past three years, the total loss to shareholders 10%

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Shareholders will probably not be too impressed with the underwhelming results at Allient Inc. (NASDAQ:ALNT) recently. At the upcoming AGM on 7th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Allient

How Does Total Compensation For Dick Warzala Compare With Other Companies In The Industry?

At the time of writing, our data shows that Allient Inc. has a market capitalization of US$362m, and reported total annual CEO compensation of US$2.9m for the year to December 2024. Notably, that's a decrease of 34% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$707k.

On examining similar-sized companies in the American Electrical industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$3.3m. So it looks like Allient compensates Dick Warzala in line with the median for the industry. Furthermore, Dick Warzala directly owns US$34m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$707k	US$675k	24%
Other	US$2.2m	US$3.7m	76%
Total Compensation	US$2.9m	US$4.4m	100%

Speaking on an industry level, nearly 18% of total compensation represents salary, while the remainder of 82% is other remuneration. Allient pays out 24% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Allient Inc.'s Growth

Over the last three years, Allient Inc. has shrunk its earnings per share by 23% per year. It saw its revenue drop 8.4% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Allient Inc. Been A Good Investment?

With a three year total loss of 10% for the shareholders, Allient Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Allient we think you should know about.

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

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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.