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In 2012 Anthony Ambrose was appointed CEO of Data I/O Corporation (NASDAQ:DAIO). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Anthony Ambrose's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Data I/O Corporation has a market cap of US$36m, and is paying total annual CEO compensation of US$893k. (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$330k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$470k.
As you can see, Anthony Ambrose is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Data I/O Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Data I/O has changed over time.
Is Data I/O Corporation Growing?
Over the last three years Data I/O Corporation has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is down -20% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Data I/O Corporation Been A Good Investment?
Data I/O Corporation has served shareholders reasonably well, with a total return of 31% over three years. 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.
We examined the amount Data I/O Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Shareholders may want to check for free if Data I/O insiders are buying or selling shares.
If you want to buy a stock that is better than Data I/O, this free list of high return, low debt companies is a great place to look.
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 email@example.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.