We Take A Look At Why Astronics Corporation's (NASDAQ:ATRO) CEO Has Earned Their Pay Packet

Key Insights

• Astronics will host its Annual General Meeting on 22nd of May
• Total pay for CEO Peter Gundermann includes US$636.3k salary
• The total compensation is similar to the average for the industry
• Astronics' EPS grew by 30% over the past three years while total shareholder return over the past three years was 187%

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We have been pretty impressed with the performance at Astronics Corporation (NASDAQ:ATRO) recently and CEO Peter Gundermann deserves a mention for their role in it. Coming up to the next AGM on 22nd of May, 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.

Check out our latest analysis for Astronics

How Does Total Compensation For Peter Gundermann Compare With Other Companies In The Industry?

At the time of writing, our data shows that Astronics Corporation has a market capitalization of US$1.0b, and reported total annual CEO compensation of US$2.9m for the year to December 2024. We note that's an increase of 10% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$636k.

In comparison with other companies in the American Aerospace & Defense industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$2.9m. So it looks like Astronics compensates Peter Gundermann in line with the median for the industry. Moreover, Peter Gundermann also holds US$25m worth of Astronics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. Astronics pays out 22% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Astronics Corporation's Growth Numbers

Over the past three years, Astronics Corporation has seen its earnings per share (EPS) grow by 30% per year. In the last year, its revenue is up 14%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Astronics Corporation Been A Good Investment?

Boasting a total shareholder return of 187% over three years, Astronics Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Astronics (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.