Dick Warzala has been the CEO of Allied Motion Technologies Inc (NASDAQ:AMOT) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dick Warzala’s Compensation Compare With Similar Sized Companies?
Our data indicates that Allied Motion Technologies Inc is worth US$437m, and total annual CEO compensation is US$1.8m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.6m.
That means Dick Warzala 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.
You can see, below, how CEO compensation at Allied Motion Technologies has changed over time.
Is Allied Motion Technologies Inc Growing?
Over the last three years Allied Motion Technologies Inc has shrunk its earnings per share by an average of 4.2% per year. In the last year, its revenue is up 25%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Allied Motion Technologies Inc Been A Good Investment?
Boasting a total shareholder return of 133% over three years, Allied Motion Technologies Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Dick Warzala is paid around the same as most CEOs of similar size companies.
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we can’t see a reason to suggest the pay is inappropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Allied Motion Technologies Inc shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.