Nick Swenson became the CEO of Air T, Inc. (NASDAQ:AIRT) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Air T
How Does Nick Swenson's Compensation Compare With Similar Sized Companies?
Our data indicates that Air T, Inc. is worth US$60m, and total annual CEO compensation was reported as US$50k for the year to March 2019. Notably, the salary of US$50k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$509k.
Most shareholders would consider it a positive that Nick Swenson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Air T has changed from year to year.
Is Air T, Inc. Growing?
Air T, Inc. has increased its earnings per share (EPS) by an average of 62% a year, over the last three years (using a line of best fit). It achieved revenue growth of 18% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Air T, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Air T, Inc. for providing a total return of 68% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Air T, Inc. is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Nick Swenson deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Air T insiders are buying or selling shares.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
About NasdaqCM:AIRT
Air T
Provides overnight air cargo, ground equipment sale, and commercial jet engines and parts in the United States and internationally.
Mediocre balance sheet and slightly overvalued.
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