Igal Zamir became the CEO of TAT Technologies Ltd. (NASDAQ:TATT) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Igal Zamir's Compensation Compare With Similar Sized Companies?
According to our data, TAT Technologies Ltd. has a market capitalization of US$33m, and paid its CEO total annual compensation worth US$463k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$322k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$587k.
So Igal Zamir 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 TAT Technologies has changed from year to year.
Is TAT Technologies Ltd. Growing?
TAT Technologies Ltd. has reduced its earnings per share by an average of 87% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 2.5% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TAT Technologies Ltd. Been A Good Investment?
Since shareholders would have lost about 58% over three years, some TAT Technologies Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Igal Zamir is paid around what is normal for the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for TAT Technologies you should be aware of, and 1 of them is a bit unpleasant.
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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