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Does Astrotech Corporation's (NASDAQ:ASTC) CEO Salary Reflect Performance?

Simply Wall St
·3 mins read

Tom Pickens became the CEO of Astrotech Corporation (NASDAQ:ASTC) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Astrotech

How Does Tom Pickens's Compensation Compare With Similar Sized Companies?

Our data indicates that Astrotech Corporation is worth US$17m, and total annual CEO compensation was reported as US$535k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$421k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$609k.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Astrotech. On a sector level, around 18% of total compensation represents salary and 82% is other remuneration. According to our research, Astrotech has allocated a higher percentage of pay to salary in comparison to the broader sector.

So Tom Pickens receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Astrotech, below.

NasdaqCM:ASTC CEO Compensation April 27th 2020
NasdaqCM:ASTC CEO Compensation April 27th 2020

Is Astrotech Corporation Growing?

On average over the last three years, Astrotech Corporation has seen earnings per share (EPS) move in a favourable direction by 23% each year (using a line of best fit). In the last year, its revenue is up 245%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Astrotech Corporation Been A Good Investment?

With a three year total loss of 56%, Astrotech Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Tom Pickens is paid around what is normal for the leaders of comparable size companies.

We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Taking a breather from CEO compensation, we've spotted 6 warning signs for Astrotech (of which 2 don't sit too well with us!) you should know about in order to have a holistic understanding of the stock.

If you want to buy a stock that is better than Astrotech, this free list of high return, low debt companies is a great place to look.

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.