In 2016 Tom Amato was appointed CEO of TriMas Corporation (NASDAQ:TRS). 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tom Amato's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that TriMas Corporation has a market cap of US$1.3b, and is paying total annual CEO compensation of US$4.1m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$638k. 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$4.0m.
That means Tom Amato receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at TriMas has changed from year to year.
Is TriMas Corporation Growing?
On average over the last three years, TriMas Corporation has grown earnings per share (EPS) by 101% each year (using a line of best fit). It achieved revenue growth of 5.8% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has TriMas Corporation Been A Good Investment?
Most shareholders would probably be pleased with TriMas Corporation for providing a total return of 63% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Tom Amato is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling TriMas shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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