Is TransAct Technologies Incorporated's (NASDAQ:TACT) CEO Paid At A Competitive Rate?
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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for TransAct Technologies
How Does Bart Shuldman's Compensation Compare With Similar Sized Companies?
Our data indicates that TransAct Technologies Incorporated is worth US$89m, and total annual CEO compensation is US$1.4m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$512k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$473k.
It would therefore appear that TransAct Technologies Incorporated pays Bart Shuldman more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 TransAct Technologies, below.
Is TransAct Technologies Incorporated Growing?
On average over the last three years, TransAct Technologies Incorporated has grown earnings per share (EPS) by 16% each year (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. While it would be good to see revenue growth, profits matter more in the end. 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?
Most shareholders would probably be pleased with TransAct Technologies Incorporated for providing a total return of 74% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared total CEO remuneration at TransAct Technologies Incorporated with the amount paid at companies with a similar market capitalization. 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TransAct Technologies.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
