AMETEK, Inc.'s (NYSE:AME) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• AMETEK to hold its Annual General Meeting on 7th of May
• Salary of US$1.40m is part of CEO Dave Zapico's total remuneration
• Total compensation is similar to the industry average
• AMETEK's total shareholder return over the past three years was 36% while its EPS grew by 12% over the past three years

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We have been pretty impressed with the performance at AMETEK, Inc. (NYSE:AME) recently and CEO Dave Zapico deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 7th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for AMETEK

How Does Total Compensation For Dave Zapico Compare With Other Companies In The Industry?

Our data indicates that AMETEK, Inc. has a market capitalization of US$39b, and total annual CEO compensation was reported as US$15m for the year to December 2024. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.

For comparison, other companies in the American Electrical industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$16m. From this we gather that Dave Zapico is paid around the median for CEOs in the industry. Moreover, Dave Zapico also holds US$59m worth of AMETEK stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$1.4m	US$1.4m	10%
Other	US$13m	US$13m	90%
Total Compensation	US$15m	US$15m	100%

Speaking on an industry level, nearly 18% of total compensation represents salary, while the remainder of 82% is other remuneration. In AMETEK's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

AMETEK, Inc.'s Growth

AMETEK, Inc.'s earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue is up 5.2%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AMETEK, Inc. Been A Good Investment?

We think that the total shareholder return of 36%, over three years, would leave most AMETEK, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying AMETEK shares with their own money (free access).

Switching gears from AMETEK, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.