Here's Why Shareholders May Want To Be Cautious With Increasing Anterix Inc.'s (NASDAQ:ATEX) CEO Pay Packet

Key Insights

• Anterix to hold its Annual General Meeting on 6th of August
• Salary of US$500.0k is part of CEO Rob Schwartz's total remuneration
• Total compensation is 38% above industry average
• Over the past three years, Anterix's EPS grew by 67% and over the past three years, the total loss to shareholders 30%

Shareholders of Anterix Inc. (NASDAQ:ATEX) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 6th of August. They could also influence management through voting on resolutions such as executive remuneration. 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 Anterix

How Does Total Compensation For Rob Schwartz Compare With Other Companies In The Industry?

According to our data, Anterix Inc. has a market capitalization of US$745m, and paid its CEO total annual compensation worth US$3.7m over the year to March 2024. That's a notable decrease of 21% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$500k.

For comparison, other companies in the American Telecom industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.7m. Hence, we can conclude that Rob Schwartz is remunerated higher than the industry median. Furthermore, Rob Schwartz directly owns US$1.2m worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	US$500k	US$502k	13%
Other	US$3.2m	US$4.2m	87%
Total Compensation	US$3.7m	US$4.7m	100%

Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. Anterix sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Anterix Inc.'s Growth

Over the past three years, Anterix Inc. has seen its earnings per share (EPS) grow by 67% per year. Its revenue is up 118% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Anterix Inc. Been A Good Investment?

With a three year total loss of 30% for the shareholders, Anterix Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Anterix (1 can't be ignored!) that you should be aware of before investing here.

Important note: Anterix is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com