Is CalAmp Corp’s (NASDAQ:CAMP) CEO Paid Enough Relative To Peers?

Michael Burdiek has been the CEO of CalAmp Corp (NASDAQ:CAMP) since 2011. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for CalAmp

How Does Michael Burdiek’s Compensation Compare With Similar Sized Companies?

Our data indicates that CalAmp Corp is worth US$676m, and total annual CEO compensation is US$3m. That’s a modest increase of 1.8% on the prior year year. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$1m.

It would therefore appear that CalAmp Corp pays Michael Burdiek more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at CalAmp, below.

NasdaqGS:CAMP CEO Compensation October 15th 18
NasdaqGS:CAMP CEO Compensation October 15th 18

Is CalAmp Corp Growing?

On average over the last three years, CalAmp Corp has grown earnings per share (EPS) by 6.8% each year. In the last year, its revenue is up 9.1%.

I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.

It could be important to check this free visual depiction of what analysts expect for the future.

Has CalAmp Corp Been A Good Investment?

With a three year total loss of 1.0%, CalAmp Corp would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at CalAmp Corp with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CalAmp Corp.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.