How Should Investors React To AstroNova, Inc.’s (NASDAQ:ALOT) CEO Pay?

Greg Woods became the CEO of AstroNova, Inc. (NASDAQ:ALOT) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

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See our latest analysis for AstroNova

How Does Greg Woods’s Compensation Compare With Similar Sized Companies?

According to our data, AstroNova, Inc. has a market capitalization of US$185m, and pays its CEO total annual compensation worth US$1.7m. (This figure is for the year to January 2019). That’s a notable increase of 144% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$410k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.

As you can see, Greg Woods is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AstroNova, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at AstroNova has changed over time.

NasdaqGM:ALOT CEO Compensation, May 16th 2019
NasdaqGM:ALOT CEO Compensation, May 16th 2019

Is AstroNova, Inc. Growing?

AstroNova, Inc. has increased its earnings per share (EPS) by an average of 3.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 21% over the last year.

I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we’ll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.

Has AstroNova, Inc. Been A Good Investment?

Most shareholders would probably be pleased with AstroNova, Inc. for providing a total return of 92% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

We examined the amount AstroNova, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AstroNova (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.