David Battat became the CEO of Atrion Corporation (NASDAQ:ATRI) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does David Battat's Compensation Compare With Similar Sized Companies?
According to our data, Atrion Corporation has a market capitalization of US$1.5b, and paid its CEO total annual compensation worth US$1.5m over the year to December 2018. 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$4.1m.
Most shareholders would consider it a positive that David Battat takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Atrion has changed over time.
Is Atrion Corporation Growing?
On average over the last three years, Atrion Corporation has grown earnings per share (EPS) by 7.8% each year (using a line of best fit). It achieved revenue growth of 3.8% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph 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 94% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Atrion Corporation pays its CEO less than similar sized companies.
It's well worth noting that while David Battat is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Atrion.
Important note: Atrion 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.
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