Ron Robinson has been the CEO of Alamo Group Inc. (NYSE:ALG) since 1999. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ron Robinson's Compensation Compare With Similar Sized Companies?
According to our data, Alamo Group Inc. has a market capitalization of US$1.5b, and paid its CEO total annual compensation worth US$2.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$695k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.9m.
So Ron Robinson is paid around the average of 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, below, how CEO compensation at Alamo Group has changed over time.
Is Alamo Group Inc. Growing?
Over the last three years Alamo Group Inc. has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). It achieved revenue growth of 7.9% 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 Alamo Group Inc. Been A Good Investment?
Most shareholders would probably be pleased with Alamo Group Inc. for providing a total return of 69% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Ron Robinson is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Alamo Group shares with their own money (free access).
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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