Yahoo Finance Astronics Corporation's (NASDAQ:ATRO) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Astronics to hold its Annual General Meeting on 8th of May
CEO Peter Gundermann's total compensation includes salary of US$606.3k
Total compensation is 66% above industry average
Astronics' total shareholder return over the past three years was 0.6% while its EPS grew by 39% over the past three years
Performance at Astronics Corporation (NASDAQ:ATRO) has been reasonably good and CEO Peter Gundermann has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 8th of May. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Astronics
How Does Total Compensation For Peter Gundermann Compare With Other Companies In The Industry?
According to our data, Astronics Corporation has a market capitalization of US$587m, and paid its CEO total annual compensation worth US$2.7m over the year to December 2023. We note that's an increase of 62% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$606k.
On examining similar-sized companies in the American Aerospace & Defense industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.6m. Accordingly, our analysis reveals that Astronics Corporation pays Peter Gundermann north of the industry median. What's more, Peter Gundermann holds US$14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$606k | US$589k | 23% |
Other | US$2.0m | US$1.1m | 77% |
Total Compensation | US$2.7m | US$1.6m | 100% |
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Our data reveals that Astronics allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Astronics Corporation's Growth Numbers
Astronics Corporation has seen its earnings per share (EPS) increase by 39% a year over the past three years. It achieved revenue growth of 29% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Astronics Corporation Been A Good Investment?
Astronics Corporation has generated a total shareholder return of 0.6% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Astronics you should be aware of, and 1 of them shouldn't be ignored.
Important note: Astronics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
