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In 2016 Tom Amato was appointed CEO of TriMas Corporation (NASDAQ:TRS). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tom Amato’s Compensation Compare With Similar Sized Companies?
Our data indicates that TriMas Corporation is worth US$1.4b, and total annual CEO compensation is US$3.4m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$625k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.4m.
So Tom Amato receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 TriMas has changed over time.
Is TriMas Corporation Growing?
On average over the last three years, TriMas Corporation has grown earnings per share (EPS) by 59% each year (using a line of best fit). In the last year, its revenue is up 6.6%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has TriMas Corporation Been A Good Investment?
Most shareholders would probably be pleased with TriMas Corporation for providing a total return of 82% 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.
Remuneration for Tom Amato is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if TriMas insiders are buying or selling shares.
Important note: TriMas may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.