Michael Prior has been the CEO of ATN International, Inc. (NASDAQ:ATNI) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Michael Prior Compare With Other Companies In The Industry?
According to our data, ATN International, Inc. has a market capitalization of US$938m, and paid its CEO total annual compensation worth US$2.6m over the year to December 2019. That's a notable decrease of 8.7% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$630k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$1.3m. Accordingly, our analysis reveals that ATN International, Inc. pays Michael Prior north of the industry median. Furthermore, Michael Prior directly owns US$32m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 28% of total compensation represents salary, while the remainder of 72% is other remuneration. ATN International sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at ATN International, Inc.'s Growth Numbers
Over the last three years, ATN International, Inc. has shrunk its earnings per share by 49% per year. It achieved revenue growth of 1.8% over the last year.
Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has ATN International, Inc. Been A Good Investment?
With a total shareholder return of 2.3% over three years, ATN International, Inc. has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
As previously discussed, Michael is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Meanwhile, EPS has not been growing sufficiently to impress us, over the last three years. And while shareholder returns have been respectable, they have hardly been superb. So we think more research is needed, but we don't think the CEO is underpaid.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for ATN International (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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