Key Insights

• AmpliTech Group to hold its Annual General Meeting on 18th of December
• Salary of US$500.0k is part of CEO Fawad Maqbool's total remuneration
• The overall pay is 71% above the industry average
• AmpliTech Group's three-year loss to shareholders was 45% while its EPS was down 28% over the past three years

The results at AmpliTech Group, Inc. (NASDAQ:AMPG) have been quite disappointing recently and CEO Fawad Maqbool bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 18th of December. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

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$13m, and reported total annual CEO compensation of US$658k for the year to December 2023. That's a notable decrease of 20% on last year. In particular, the salary of US$500.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the American Electronic industry with market capitalizations under US$200m, the reported median total CEO compensation was US$384k. Hence, we can conclude that Fawad Maqbool is remunerated higher than the industry median. Furthermore, Fawad Maqbool directly owns US$5.1m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 28% of total compensation represents salary and 72% is other remuneration. AmpliTech Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

AmpliTech Group, Inc.'s Growth

Over the last three years, AmpliTech Group, Inc. has shrunk its earnings per share by 28% per year. In the last year, its revenue is down 26%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AmpliTech Group, Inc. Been A Good Investment?

The return of -45% over three years would not have pleased AmpliTech Group, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for AmpliTech Group (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.