Jeff Yabuki became the CEO of Fiserv, Inc. (NASDAQ:FISV) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Yabuki's Compensation Compare With Similar Sized Companies?
According to our data, Fiserv, Inc. has a market capitalization of US$78b, and paid its CEO total annual compensation worth US$12m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$840k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Jeff Yabuki receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Fiserv has changed from year to year.
Is Fiserv, Inc. Growing?
On average over the last three years, Fiserv, Inc. has grown earnings per share (EPS) by 8.2% each year (using a line of best fit). In the last year, its revenue is up 33%.
It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.
Has Fiserv, Inc. Been A Good Investment?
Boasting a total shareholder return of 121% over three years, Fiserv, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Jeff Yabuki is paid around what is normal the leaders of larger companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I'd venture that the CEO pay is appropriate. So you may want to check if insiders are buying Fiserv shares with their own money (free access).
Important note: Fiserv may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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