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Dan Batrack has been the CEO of Tetra Tech, Inc. (NASDAQ:TTEK) since 2005. 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. 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 Dan Batrack's Compensation Compare With Similar Sized Companies?
According to our data, Tetra Tech, Inc. has a market capitalization of US$4.6b, and pays its CEO total annual compensation worth US$6.0m. (This number is for the twelve months until September 2018). While we always look at total compensation first, we note that the salary component is less, at US$938k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.2m.
So Dan Batrack 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.
You can see a visual representation of the CEO compensation at Tetra Tech, below.
Is Tetra Tech, Inc. Growing?
Over the last three years Tetra Tech, Inc. has grown its earnings per share (EPS) by an average of 39% per year (using a line of best fit). It achieved revenue growth of 7.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Tetra Tech, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Tetra Tech, Inc. for providing a total return of 172% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Dan Batrack is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tetra Tech (free visualization of insider trades).
If you want to buy a stock that is better than Tetra Tech, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.