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Does EVERTEC, Inc.'s (NYSE:EVTC) CEO Pay Reflect Performance?

Simply Wall St

In 2015 Mac Schuessler was appointed CEO of EVERTEC, Inc. (NYSE:EVTC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for EVERTEC

How Does Mac Schuessler's Compensation Compare With Similar Sized Companies?

According to our data, EVERTEC, Inc. has a market capitalization of US$2.2b, and pays its CEO total annual compensation worth US$4.7m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$679k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.

So Mac Schuessler receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at EVERTEC, below.

NYSE:EVTC CEO Compensation, July 23rd 2019

Is EVERTEC, Inc. Growing?

Over the last three years EVERTEC, Inc. has shrunk its earnings per share by an average of 2.6% per year (measured with a line of best fit). In the last year, its revenue is up 11%.

Unfortunately there is a complete lack of earnings per share improvement, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has EVERTEC, Inc. Been A Good Investment?

Most shareholders would probably be pleased with EVERTEC, Inc. for providing a total return of 100% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Mac Schuessler is paid around what is normal the leaders of comparable size companies.

We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. Shareholders may want to check for free if EVERTEC insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.