Yahoo Finance Shareholders Will Probably Hold Off On Increasing AptarGroup, Inc.'s (NYSE:ATR) CEO Compensation For The Time Being
Key Insights
AptarGroup to hold its Annual General Meeting on 1st of May
CEO Stephan Tanda's total compensation includes salary of US$1.12m
Total compensation is similar to the industry average
AptarGroup's EPS grew by 9.0% over the past three years while total shareholder loss over the past three years was 3.4%
In the past three years, the share price of AptarGroup, Inc. (NYSE:ATR) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 1st of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for AptarGroup
Comparing AptarGroup, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that AptarGroup, Inc. has a market capitalization of US$9.3b, and reported total annual CEO compensation of US$8.9m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.
On examining similar-sized companies in the American Packaging industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$8.9m. So it looks like AptarGroup compensates Stephan Tanda in line with the median for the industry. Moreover, Stephan Tanda also holds US$23m worth of AptarGroup stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.1m | US$1.1m | 13% |
Other | US$7.8m | US$7.7m | 87% |
Total Compensation | US$8.9m | US$8.8m | 100% |
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Our data reveals that AptarGroup allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
AptarGroup, Inc.'s Growth
Over the past three years, AptarGroup, Inc. has seen its earnings per share (EPS) grow by 9.0% per year. Its revenue is up 5.0% over the last year.
We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 AptarGroup, Inc. Been A Good Investment?
Since shareholders would have lost about 3.4% over three years, some AptarGroup, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for AptarGroup that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
