We Think Shareholders May Want To Consider A Review Of ATN International, Inc.'s (NASDAQ:ATNI) CEO Compensation Package

By
Simply Wall St
Published
June 02, 2021
NasdaqGS:ATNI
Source: Shutterstock

ATN International, Inc. (NASDAQ:ATNI) has not performed well recently and CEO Michael T. Prior will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 10 June 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for ATN International

Comparing ATN International, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that ATN International, Inc. has a market capitalization of US$752m, and reported total annual CEO compensation of US$2.7m for the year to December 2020. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$645k.

On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$1.7m. Hence, we can conclude that Michael T. Prior is remunerated higher than the industry median. Moreover, Michael T. Prior also holds US$26m worth of ATN International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$645k US$630k 24%
Other US$2.0m US$2.0m 76%
Total CompensationUS$2.7m US$2.6m100%

On an industry level, around 26% of total compensation represents salary and 74% is other remuneration. Although there is a difference in how total compensation is set, ATN International more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NasdaqGS:ATNI CEO Compensation June 3rd 2021

A Look at ATN International, Inc.'s Growth Numbers

Over the last three years, ATN International, Inc. has shrunk its earnings per share by 104% per year. It achieved revenue growth of 5.1% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ATN International, Inc. Been A Good Investment?

Given the total shareholder loss of 12% over three years, many shareholders in ATN International, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for ATN International that investors should be aware of in a dynamic business environment.

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.

When trading ATN International or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.