Tom Pickens has been the CEO of Astrotech Corporation (NASDAQ:ASTC) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
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How Does Tom Pickens’s Compensation Compare With Similar Sized Companies?
Our data indicates that Astrotech Corporation is worth US$21m, and total annual CEO compensation is US$497k. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at US$472k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$303k.
It would therefore appear that Astrotech Corporation pays Tom Pickens 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Astrotech, below.
Is Astrotech Corporation Growing?
On average over the last three years, Astrotech Corporation has grown earnings per share (EPS) by 2.1% each year (using a line of best fit). In the last year, its revenue is down -91%.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Astrotech Corporation Been A Good Investment?
With a three year total loss of 20%, Astrotech Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Astrotech Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Shareholders may want to check for free if Astrotech insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.