Dan Batrack became the CEO of Tetra Tech, Inc. (NASDAQ:TTEK) in 2005. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Dan Batrack's Compensation Compare With Similar Sized Companies?
Our data indicates that Tetra Tech, Inc. is worth US$4.9b, and total annual CEO compensation was reported as US$6.5m for the year to September 2019. We note that's an increase of 8.4% above last year. While we always look at total compensation first, we note that the salary component is less, at US$977k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.5m.
So Dan Batrack receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Tetra Tech has changed from year to year.
Is Tetra Tech, Inc. Growing?
Over the last three years Tetra Tech, Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). Its revenue is up 8.6% over 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Tetra Tech, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Tetra Tech, Inc. for providing a total return of 121% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Dan Batrack is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Tetra Tech shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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