Does AMETEK Inc’s (NYSE:AME) CEO Salary Reflect Performance?
Dave Zapico has been the CEO of AMETEK Inc (NYSE:AME) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for AMETEK
How Does Dave Zapico’s Compensation Compare With Similar Sized Companies?
According to our data, AMETEK Inc has a market capitalization of US$17b, and pays its CEO total annual compensation worth US$7.8m. That’s a notable increase of 71% on last year. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.
That means Dave Zapico receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at AMETEK, below.
Is AMETEK Inc Growing?
AMETEK Inc has increased its earnings per share (EPS) by an average of 12% a year, over the last three years It achieved revenue growth of 14% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has AMETEK Inc Been A Good Investment?
AMETEK Inc has served shareholders reasonably well, with a total return of 31% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Remuneration for Dave Zapico is close enough to the median pay for a CEO of a large company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable.
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.
