Is American Superconductor Corporation’s (NASDAQ:AMSC) CEO Paid At A Competitive Rate?
Dan McGahn became the CEO of American Superconductor Corporation (NASDAQ:AMSC) in 2011. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for American Superconductor
How Does Dan McGahn’s Compensation Compare With Similar Sized Companies?
Our data indicates that American Superconductor Corporation is worth US$200m, and total annual CEO compensation is US$1m. That’s a notable increase of 54% on last year. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$904k.
It would therefore appear that American Superconductor Corporation pays Dan McGahn more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at American Superconductor has changed from year to year.
Is American Superconductor Corporation Growing?
American Superconductor Corporation has increased its earnings per share (EPS) by an average of 24% a year, over the last three years Its revenue is down -12% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
It could be important to check this free visual depiction of what analysts expect for the future.
Has American Superconductor Corporation Been A Good Investment?
Boasting a total shareholder return of 104% over three years, American Superconductor Corporation has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We examined the amount American Superconductor Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling American Superconductor Corporation shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
