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Is Air T, Inc.'s (NASDAQ:AIRT) CEO Being Overpaid?

Simply Wall St

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In 2014 Nick Swenson was appointed CEO of Air T, Inc. (NASDAQ:AIRT). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Air T

How Does Nick Swenson's Compensation Compare With Similar Sized Companies?

According to our data, Air T, Inc. has a market capitalization of US$56m, and pays its CEO total annual compensation worth US$50k. (This is based on the year to March 2018). 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$453k.

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. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Air T has changed from year to year.

NasdaqCM:AIRT CEO Compensation, June 10th 2019

Is Air T, Inc. Growing?

Over the last three years Air T, Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). Its revenue is up 23% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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?

With a total shareholder return of 10% over three years, Air T, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It looks like Air T, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Nick Swenson is overcompensated.

Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Air T (free visualization of insider trades).

If you want to buy a stock that is better than Air T, this free list of high return, low debt companies is a great place to look.

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.