Data I/O Corporation's (NASDAQ:DAIO) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Data I/O's Annual General Meeting to take place on 16th of May
• Total pay for CEO Anthony Ambrose includes US$338.5k salary
• The overall pay is 63% above the industry average
• Over the past three years, Data I/O's EPS grew by 85% and over the past three years, the total loss to shareholders 42%

In the past three years, the share price of Data I/O Corporation (NASDAQ:DAIO) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 16th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Data I/O

Comparing Data I/O Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Data I/O Corporation has a market capitalization of US$28m, and reported total annual CEO compensation of US$775k for the year to December 2023. We note that's an increase of 22% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$339k.

For comparison, other companies in the American Electronic industry with market capitalizations below US$200m, reported a median total CEO compensation of US$475k. This suggests that Anthony Ambrose is paid more than the median for the industry. What's more, Anthony Ambrose holds US$954k worth of shares in the company in their own name.

On an industry level, around 31% of total compensation represents salary and 69% is other remuneration. Data I/O is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Data I/O Corporation's Growth Numbers

Data I/O Corporation's earnings per share (EPS) grew 85% per year over the last three years. In the last year, its revenue is up 1.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Data I/O Corporation Been A Good Investment?

With a total shareholder return of -42% over three years, Data I/O Corporation shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Data I/O that investors should think about before committing capital to this stock.

Switching gears from Data I/O, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.