Yahoo Finance We Think Some Shareholders May Hesitate To Increase Allient Inc.'s (NASDAQ:ALNT) CEO Compensation
Key Insights
Allient's Annual General Meeting to take place on 8th of May
Total pay for CEO Dick Warzala includes US$675.0k salary
The overall pay is comparable to the industry average
Allient's three-year loss to shareholders was 13% while its EPS grew by 15% over the past three years
In the past three years, the share price of Allient Inc. (NASDAQ:ALNT) has struggled to generate growth for its shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 8th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Allient
How Does Total Compensation For Dick Warzala Compare With Other Companies In The Industry?
According to our data, Allient Inc. has a market capitalization of US$492m, and paid its CEO total annual compensation worth US$4.4m over the year to December 2023. We note that's a small decrease of 6.2% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$675k.
On comparing similar companies from the American Electrical industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$3.7m. So it looks like Allient compensates Dick Warzala in line with the median for the industry. Moreover, Dick Warzala also holds US$47m worth of Allient 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$675k | US$639k | 15% |
Other | US$3.7m | US$4.0m | 85% |
Total Compensation | US$4.4m | US$4.7m | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. Allient pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Allient Inc.'s Growth
Over the past three years, Allient Inc. has seen its earnings per share (EPS) grow by 15% per year. In the last year, its revenue is up 15%.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Allient Inc. Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Allient Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Allient that investors should look into moving forward.
Switching gears from Allient, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
