Dick Warzala has been the CEO of Allied Motion Technologies Inc. (NASDAQ:AMOT) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
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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$341m, and pays its CEO total annual compensation worth US$2.4m. (This figure is for the year to December 2018). Notably, that’s an increase of 33% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$524k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
As you can see, Dick Warzala is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Allied Motion Technologies Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Allied Motion Technologies has changed from year to year.
Is Allied Motion Technologies Inc. Growing?
Over the last three years Allied Motion Technologies Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue is up 23%.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Allied Motion Technologies Inc. Been A Good Investment?
I think that the total shareholder return of 61%, over three years, would leave most Allied Motion Technologies Inc. shareholders smiling. 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.
We compared total CEO remuneration at Allied Motion Technologies Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. 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.
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