What We Learned About TransAct Technologies' (NASDAQ:TACT) CEO Compensation

Bart Shuldman became the CEO of TransAct Technologies Incorporated (NASDAQ:TACT) in 1996, 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 TransAct Technologies.

Check out our latest analysis for TransAct Technologies

Comparing TransAct Technologies Incorporated's CEO Compensation With the industry

At the time of writing, our data shows that TransAct Technologies Incorporated has a market capitalization of US$78m, and reported total annual CEO compensation of US$1.4m for the year to December 2019. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$515k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$395k. Accordingly, our analysis reveals that TransAct Technologies Incorporated pays Bart Shuldman north of the industry median. What's more, Bart Shuldman holds US$604k worth of shares in the company in their own name.

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. It's interesting to note that TransAct Technologies pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

TransAct Technologies Incorporated's Growth

TransAct Technologies Incorporated has reduced its earnings per share by 74% a year over the last three years. Its revenue is down 27% over the previous year.

Overall this is not a very positive result for shareholders. 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 TransAct Technologies Incorporated Been A Good Investment?

Since shareholders would have lost about 30% over three years, some TransAct Technologies Incorporated investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, TransAct Technologies pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for TransAct Technologies that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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