How Much Is ATS Automation Tooling Systems’ (TSE:ATA) CEO Getting Paid? – Simply Wall St

This article will reflect on the compensation paid to Andrew Hider who has served as CEO of ATS Automation Tooling Systems Inc. (TSE:ATA) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for ATS Automation Tooling Systems

According to our data, ATS Automation Tooling Systems Inc. has a market capitalization of CA$2.2b, and paid its CEO total annual compensation worth CA$4.0m over the year to March 2020. We note that's a decrease of 21% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$935k.

On comparing similar companies from the same industry with market caps ranging from CA$1.3b to CA$4.1b, we found that the median CEO total compensation was CA$5.0m. So it looks like ATS Automation Tooling Systems compensates Andrew Hider in line with the median for the industry. What's more, Andrew Hider holds CA$4.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. It's interesting to note that ATS Automation Tooling Systems allocates a smaller portion of compensation to salary in comparison 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.

Earnings per share at ATS Automation Tooling Systems Inc. are much the same as they were three years ago, albeit slightly lower. In the last year, its revenue is up 4.4%.

A lack of EPS improvement is not good to see. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

We think that the total shareholder return of 40%, over three years, would leave most ATS Automation Tooling Systems Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

As we touched on above, ATS Automation Tooling Systems Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Some investors may take issue with this, especially considering shrinking EPS for the past three years. On the other hand, shareholder returns are showing positive trends over the same time frame. We do not think CEO compensation is a problem, but shrinking EPS is undoubtedly an issue that will have to be addressed.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for ATS Automation Tooling Systems that you should be aware of before investing.

Switching gears from ATS Automation Tooling Systems, 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. 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. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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How Much Is ATS Automation Tooling Systems' (TSE:ATA) CEO Getting Paid? - Simply Wall St