Chris Atayan became the CEO of AMCON Distributing Company (NYSEMKT:DIT) in 2006. 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 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.
How Does Chris Atayan’s Compensation Compare With Similar Sized Companies?
Our data indicates that AMCON Distributing Company is worth US$52m, and total annual CEO compensation is US$2.2m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$553k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$302k.
It would therefore appear that AMCON Distributing Company pays Chris Atayan 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.
You can see, below, how CEO compensation at AMCON Distributing has changed over time.
Is AMCON Distributing Company Growing?
On average over the last three years, AMCON Distributing Company has shrunk earnings per share by 30% each year. In the last year, its revenue is up 5.3%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has AMCON Distributing Company Been A Good Investment?
AMCON Distributing Company has not done too badly by shareholders, with a total return of 8.9%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at AMCON Distributing Company with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
While shareholder returns are acceptable, they don’t delight. So you may want to delve deeper, because we don’t think the CEO pay is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AMCON Distributing.
Or you might rather take a peek at this analytical visualization of historic cash flow, 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 email@example.com.