How Is AstroNova's (NASDAQ:ALOT) CEO Paid Relative To Peers?

Greg Woods has been the CEO of AstroNova, Inc. (NASDAQ:ALOT) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AstroNova.

See our latest analysis for AstroNova

How Does Total Compensation For Greg Woods Compare With Other Companies In The Industry?

At the time of writing, our data shows that AstroNova, Inc. has a market capitalization of US$72m, and reported total annual CEO compensation of US$1.2m for the year to January 2020. Notably, that's a decrease of 31% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$446k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$395k. Hence, we can conclude that Greg Woods is remunerated higher than the industry median. What's more, Greg Woods holds US$1.1m worth of shares in the company in their own name.

On an industry level, around 26% of total compensation represents salary and 74% is other remuneration. According to our research, AstroNova has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

AstroNova, Inc.'s Growth

AstroNova, Inc. has reduced its earnings per share by 17% a year over the last three years. Its revenue is down 13% over the previous year.

Few shareholders would be pleased to read that EPS have declined. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AstroNova, Inc. Been A Good Investment?

With a three year total loss of 28% for the shareholders, AstroNova, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Greg is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. What's equally worrying is that the company isn't growing by our analysis. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

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 3 warning signs for AstroNova (of which 1 is significant!) 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.

If you decide to trade AstroNova, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.