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Is Astronics Corporation (NASDAQ:ATRO) Overpaying Its CEO?

Simply Wall St

Peter Gundermann became the CEO of Astronics Corporation (NASDAQ:ATRO) in 2003. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Astronics

How Does Peter Gundermann's Compensation Compare With Similar Sized Companies?

According to our data, Astronics Corporation has a market capitalization of US$887m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$549k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.6m.

Most shareholders would consider it a positive that Peter Gundermann 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.

You can see, below, how CEO compensation at Astronics has changed over time.

NasdaqGS:ATRO CEO Compensation, December 2nd 2019

Is Astronics Corporation Growing?

On average over the last three years, Astronics Corporation has grown earnings per share (EPS) by 39% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Astronics Corporation Been A Good Investment?

Since shareholders would have lost about 6.6% over three years, some Astronics Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that Astronics Corporation remunerates its CEO below most similar sized companies.

Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we don't think, Peter Gundermann is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Astronics.

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.

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.

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. Thank you for reading.