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Igal Zamir became the CEO of TAT Technologies Ltd. (NASDAQ:TATT) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Igal Zamir’s Compensation Compare With Similar Sized Companies?
Our data indicates that TAT Technologies Ltd. is worth US$61m, and total annual CEO compensation is US$605k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$317k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$300k.
As you can see, Igal Zamir is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TAT Technologies Ltd. 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 a visual representation of the CEO compensation at TAT Technologies, below.
Is TAT Technologies Ltd. Growing?
TAT Technologies Ltd. has reduced its earnings per share by an average of 67% a year, over the last three years. Its revenue is down -6.2% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TAT Technologies Ltd. Been A Good Investment?
TAT Technologies Ltd. has generated a total shareholder return of 8.4% over three years, so most shareholders wouldn’t be too disappointed. 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 compared the total CEO remuneration paid by TAT Technologies Ltd., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
While shareholder returns are acceptable, they don’t delight. So you may want to delve deeper, because we don’t think the CEO pay is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TAT Technologies.
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 firstname.lastname@example.org.