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Does United-Guardian, Inc.'s (NASDAQ:UG) CEO Pay Reflect Performance?

Simply Wall St

In 2009 Ken Globus was appointed CEO of United-Guardian, Inc. (NASDAQ:UG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for United-Guardian

How Does Ken Globus's Compensation Compare With Similar Sized Companies?

According to our data, United-Guardian, Inc. has a market capitalization of US$86m, and paid its CEO total annual compensation worth US$422k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$273k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$496k.

So Ken Globus is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at United-Guardian has changed from year to year.

NasdaqGM:UG CEO Compensation, October 3rd 2019

Is United-Guardian, Inc. Growing?

Over the last three years United-Guardian, Inc. has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). In the last year, its revenue is down 6.0%.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has United-Guardian, Inc. Been A Good Investment?

Most shareholders would probably be pleased with United-Guardian, Inc. for providing a total return of 51% over three years. 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.

In Summary...

Ken Globus is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at United-Guardian.

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.