Igal Zamir has been the CEO of TAT Technologies Ltd. (NASDAQ:TATT) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether TAT Technologies pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for TAT Technologies
How Does Total Compensation For Igal Zamir Compare With Other Companies In The Industry?
According to our data, TAT Technologies Ltd. has a market capitalization of US$40m, and paid its CEO total annual compensation worth US$499k over the year to December 2019. That's a fairly small increase of 7.8% over the previous year. In particular, the salary of US$321.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$419k. This suggests that TAT Technologies remunerates its CEO largely in line with the industry average.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$321k | US$322k | 64% |
| Other | US$178k | US$141k | 36% |
| Total Compensation | US$499k | US$463k | 100% |
Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. TAT Technologies pays out 64% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at TAT Technologies Ltd.'s Growth Numbers
TAT Technologies Ltd. has reduced its earnings per share by 33% a year over the last three years. In the last year, its revenue is down 7.4%.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TAT Technologies Ltd. Been A Good Investment?
Since shareholders would have lost about 56% over three years, some TAT Technologies Ltd. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Igal is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for TAT Technologies you should be aware of, and 1 of them can't be ignored.
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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About NasdaqGM:TATT
TAT Technologies
Provides solutions and services to the commercial and military aerospace, and ground defense industries in the United States, Israel, and internationally.
Solid track record with reasonable growth potential.
