What Did AMCON Distributing's (NYSEMKT:DIT) CEO Take Home Last Year?

Chris Atayan became the CEO of AMCON Distributing Company (NYSEMKT:DIT) in 2006, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AMCON Distributing.

See our latest analysis for AMCON Distributing

Comparing AMCON Distributing Company's CEO Compensation With the industry

According to our data, AMCON Distributing Company has a market capitalization of US$51m, and paid its CEO total annual compensation worth US$2.4m over the year to September 2020. That's a notable increase of 18% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$605k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$34k. This suggests that Chris Atayan is paid more than the median for the industry. What's more, Chris Atayan holds US$32m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. In AMCON Distributing's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

AMCON Distributing Company's Growth

AMCON Distributing Company has seen its earnings per share (EPS) increase by 32% a year over the past three years. Its revenue is up 10% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has AMCON Distributing Company Been A Good Investment?

Since shareholders would have lost about 4.5% over three years, some AMCON Distributing Company investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, AMCON Distributing pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Chris is underpaid, in fact compensation is definitely on the higher side.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for AMCON Distributing (1 can't be ignored!) 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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