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Does CalAmp Corp.'s (NASDAQ:CAMP) CEO Pay Matter?

Simply Wall St

Michael Burdiek has been the CEO of CalAmp Corp. (NASDAQ:CAMP) since 2011. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for CalAmp

How Does Michael Burdiek's Compensation Compare With Similar Sized Companies?

According to our data, CalAmp Corp. has a market capitalization of US$361m, and pays its CEO total annual compensation worth US$2.8m. (This is based on the year to February 2019). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$515k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.

It would therefore appear that CalAmp Corp. pays Michael Burdiek 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at CalAmp has changed from year to year.

NasdaqGS:CAMP CEO Compensation, July 22nd 2019
NasdaqGS:CAMP CEO Compensation, July 22nd 2019

Is CalAmp Corp. Growing?

CalAmp Corp. has increased its earnings per share (EPS) by an average of 34% a year, over the last three years (using a line of best fit). It saw its revenue drop -4.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.

Has CalAmp Corp. Been A Good Investment?

Since shareholders would have lost about 25% over three years, some CalAmp Corp. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount CalAmp Corp. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling CalAmp shares (free trial).

Important note: CalAmp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.