In 2011 David Battat was appointed CEO of Atrion Corporation (NASDAQ:ATRI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Battat’s Compensation Compare With Similar Sized Companies?
According to our data, Atrion Corporation has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$4.3m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$620k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.
So David Battat is paid around the average of 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, below, how CEO compensation at Atrion has changed over time.
Is Atrion Corporation Growing?
Atrion Corporation has increased its earnings per share (EPS) by an average of 9.1% a year, over the last three years Its revenue is up 3.9% over last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Atrion Corporation Been A Good Investment?
Most shareholders would probably be pleased with Atrion Corporation for providing a total return of 107% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
David Battat is paid around what is normal the leaders of comparable size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. So you may want to check if insiders are buying Atrion shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 firstname.lastname@example.org.