Is Altisource Portfolio Solutions SA (NASDAQ:ASPS) Overpaying Its CEO?
William Shepro has been the CEO of Altisource Portfolio Solutions SA (NASDAQ:ASPS) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Altisource Portfolio Solutions
How Does William Shepro’s Compensation Compare With Similar Sized Companies?
Our data indicates that Altisource Portfolio Solutions SA is worth US$379m, and total annual CEO compensation is US$7m. That’s a notable increase of 165% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$2m.
As you can see, William Shepro is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Altisource Portfolio Solutions SA is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Altisource Portfolio Solutions has changed from year to year.
Is Altisource Portfolio Solutions SA Growing?
Over the last three years Altisource Portfolio Solutions SA has grown its earnings per share (EPS) by an average of 87% per year. Its revenue is down -13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Altisource Portfolio Solutions SA Been A Good Investment?
Given the total loss of 17% over three years, many shareholders in Altisource Portfolio Solutions SA are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at Altisource Portfolio Solutions SA with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. This doesn’t look great when you consider CEO remuneration is up on last year. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Altisource Portfolio Solutions SA.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
