Key Insights

• Nortech Systems' Annual General Meeting to take place on 15th of May
• Total pay for CEO Jay Miller includes US$520.0k salary
• Total compensation is 71% above industry average
• Nortech Systems' total shareholder return over the past three years was 170% while its EPS grew by 49% over the past three years

CEO Jay Miller has done a decent job of delivering relatively good performance at Nortech Systems Incorporated (NASDAQ:NSYS) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. However, some shareholders may still want to keep CEO compensation within reason.

Comparing Nortech Systems Incorporated's CEO Compensation With The Industry

Our data indicates that Nortech Systems Incorporated has a market capitalization of US$42m, and total annual CEO compensation was reported as US$820k for the year to December 2023. Notably, that's a decrease of 20% over the year before. We note that the salary portion, which stands at US$520.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the American Electronic industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$479k. This suggests that Jay Miller is paid more than the median for the industry. Furthermore, Jay Miller directly owns US$430k worth of shares in the company.

On an industry level, roughly 31% of total compensation represents salary and 69% is other remuneration. Nortech Systems is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Nortech Systems Incorporated's Growth Numbers

Over the past three years, Nortech Systems Incorporated has seen its earnings per share (EPS) grow by 49% per year. In the last year, its revenue is up 3.9%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nortech Systems Incorporated Been A Good Investment?

We think that the total shareholder return of 170%, over three years, would leave most Nortech Systems Incorporated shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Nortech Systems that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.