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Dick Warzala has been the CEO of Allied Motion Technologies Inc. (NASDAQ:AMOT) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
How Does Dick Warzala’s Compensation Compare With Similar Sized Companies?
According to our data, Allied Motion Technologies Inc. has a market capitalization of US$408m, and pays its CEO total annual compensation worth US$1.8m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$496k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.
That means Dick Warzala receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Allied Motion Technologies has changed over time.
Is Allied Motion Technologies Inc. Growing?
Over the last three years Allied Motion Technologies Inc. has shrunk its earnings per share by an average of 4.2% per year (measured with a line of best fit). It achieved revenue growth of 25% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Allied Motion Technologies Inc. Been A Good Investment?
Most shareholders would probably be pleased with Allied Motion Technologies Inc. for providing a total return of 136% 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.
Dick Warzala is paid around what is normal the leaders of comparable size companies.
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Shareholders may want to check for free if Allied Motion Technologies insiders are buying or selling shares.
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.
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 email@example.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. On rare occasion, data errors may occur. Thank you for reading.