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Bart Shuldman has been the CEO of TransAct Technologies Incorporated (NASDAQ:TACT) since 1996. 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 Bart Shuldman’s Compensation Compare With Similar Sized Companies?
Our data indicates that TransAct Technologies Incorporated is worth US$77m, and total annual CEO compensation is US$1.4m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$500k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$300k.
Thus we can conclude that Bart Shuldman receives more in total compensation than the median of a group of companies in the same market, and of similar size to TransAct Technologies Incorporated. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at TransAct Technologies has changed from year to year.
Is TransAct Technologies Incorporated Growing?
TransAct Technologies Incorporated has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is down -1.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has TransAct Technologies Incorporated Been A Good Investment?
I think that the total shareholder return of 57%, over three years, would leave most TransAct Technologies Incorporated shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by TransAct Technologies Incorporated, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if TransAct Technologies insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
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 email@example.com.