Key Things To Understand About AmpliTech Group's (NASDAQ:AMPG) CEO Pay Cheque

Fawad Maqbool became the CEO of AmpliTech Group, Inc. (NASDAQ:AMPG) in 2012, 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 AmpliTech Group.

Check out our latest analysis for AmpliTech Group

Comparing AmpliTech Group, Inc.'s CEO Compensation With the industry

According to our data, AmpliTech Group, Inc. has a market capitalization of US$36m, and paid its CEO total annual compensation worth US$192k over the year to December 2020. We note that's a decrease of 9.7% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$192k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$436k. In other words, AmpliTech Group pays its CEO lower than the industry median. Furthermore, Fawad Maqbool directly owns US$88m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 33% of total compensation represents salary and 67% is other remuneration. On a company level, AmpliTech Group prefers to reward its CEO through a salary, opting not to pay Fawad Maqbool through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at AmpliTech Group, Inc.'s Growth Numbers

Over the last three years, AmpliTech Group, Inc. has shrunk its earnings per share by 69% per year. It achieved revenue growth of 29% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has AmpliTech Group, Inc. Been A Good Investment?

We think that the total shareholder return of 747%, over three years, would leave most AmpliTech Group, Inc. shareholders smiling. 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.

To Conclude...

AmpliTech Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, AmpliTech Group, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. And as we saw, revenue growth and shareholder returns have been rising But it's noteworthy that EPS growth is in the red during the same time frame. But all things considered, we believe shareholders will be happy with the performance, and that's why CEO compensation is appropriate in our opinion.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which are a bit unpleasant) in AmpliTech Group we think you should know about.

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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