How Is Astrotech's (NASDAQ:ASTC) CEO Compensated?

Tom Pickens became the CEO of Astrotech Corporation (NASDAQ:ASTC) in 2007, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Astrotech

How Does Total Compensation For Tom Pickens Compare With Other Companies In The Industry?

At the time of writing, our data shows that Astrotech Corporation has a market capitalization of US$67m, and reported total annual CEO compensation of US$535k for the year to June 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at US$429.7k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$470k. So it looks like Astrotech compensates Tom Pickens in line with the median for the industry. Furthermore, Tom Pickens directly owns US$5.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. It's interesting to note that Astrotech pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Astrotech Corporation's Growth

Astrotech Corporation's earnings per share (EPS) grew 35% per year over the last three years. In the last year, its revenue is up 545%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Astrotech Corporation Been A Good Investment?

With a total shareholder return of 11% over three years, Astrotech Corporation shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, Tom is compensated close to the median for companies of its size, and which belong to the same industry. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 6 warning signs for Astrotech (3 are a bit unpleasant!) that you should be aware of before investing here.

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. 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.
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