Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Dick Warzala became the CEO of Allied Motion Technologies Inc. (NASDAQ:AMOT) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dick Warzala's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Allied Motion Technologies Inc. has a market cap of US$381m, and is paying total annual CEO compensation of US$2.4m. (This figure is for the year to December 2018). Notably, that's an increase of 33% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$524k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.6m.
Thus we can conclude that Dick Warzala receives more in total compensation than the median of a group of companies in the same market, and of similar size to Allied Motion Technologies Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Allied Motion Technologies, below.
Is Allied Motion Technologies Inc. Growing?
Allied Motion Technologies Inc. has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 23%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Allied Motion Technologies Inc. Been A Good Investment?
Boasting a total shareholder return of 78% over three years, Allied Motion Technologies Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Allied Motion Technologies Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Allied Motion Technologies.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.