Fawad Maqbool became the CEO of AmpliTech Group, Inc. (NASDAQ:AMPG) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether AmpliTech Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for AmpliTech Group
Comparing AmpliTech Group, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that AmpliTech Group, Inc. has a market capitalization of US$36m, and reported total annual CEO compensation of US$192k for the year to December 2020. Notably, that's a decrease of 9.7% over the year before. Notably, the salary of US$192k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$436k. Accordingly, AmpliTech Group pays its CEO under the industry median. Moreover, Fawad Maqbool also holds US$88m worth of AmpliTech Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$192k | US$212k | 100% |
| Other | - | - | - |
| Total Compensation | US$192k | US$212k | 100% |
On an industry level, around 33% of total compensation represents salary and 67% is other remuneration. On a company level, AmpliTech Group prefers to reward its CEO through a salary, opting not to pay Fawad Maqbool through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at AmpliTech Group, Inc.'s Growth Numbers
Over the last three years, AmpliTech Group, Inc. has shrunk its earnings per share by 69% per year. In the last year, its revenue is up 29%.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has AmpliTech Group, Inc. Been A Good Investment?
Most shareholders would probably be pleased with AmpliTech Group, Inc. for providing a total return of 747% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
AmpliTech Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Fawad is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Meanwhile, shareholder returns and revenues are growing at a good clip. But it's noteworthy that EPS growth is in the red during the same time frame. However, considering all aspects of performance, we've concluded Fawad earns an appropriate compensation.
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. That's why we did our research, and identified 5 warning signs for AmpliTech Group (of which 2 make us uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from AmpliTech Group, 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.
This article by Simply Wall St is general in nature. 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.
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