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Jeff Yabuki has been the CEO of Fiserv, Inc. (NASDAQ:FISV) since 2005. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Jeff Yabuki's Compensation Compare With Similar Sized Companies?
According to our data, Fiserv, Inc. has a market capitalization of US$35b, and pays its CEO total annual compensation worth US$12m. (This number is for the twelve months until December 2018). Notably, that's an increase of 19% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$840k. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Jeff Yabuki 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 Fiserv, below.
Is Fiserv, Inc. Growing?
Over the last three years Fiserv, Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). It achieved revenue growth of 2.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Fiserv, Inc. Been A Good Investment?
Boasting a total shareholder return of 71% over three years, Fiserv, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Jeff Yabuki is close enough to the median pay for a CEO of a large company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Fiserv shares (free trial).
If you want to buy a stock that is better than Fiserv, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.