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In 2009 Ken Globus was appointed CEO of United-Guardian, Inc. (NASDAQ:UG). First, this article will compare CEO compensation with compensation at similar sized 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 Ken Globus’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that United-Guardian, Inc. has a market cap of US$91m, and is paying total annual CEO compensation of US$372k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$268k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$299k.
That means Ken Globus receives fairly typical remuneration for the CEO of a company that size. 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.
Is United-Guardian, Inc. Growing?
Over the last three years United-Guardian, Inc. has grown its earnings per share (EPS) by an average of 2.7% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.
I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. Although we’ll stop short of calling the stock a top performer, we think the company has potential. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has United-Guardian, Inc. Been A Good Investment?
United-Guardian, Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Ken Globus is paid around what is normal the leaders of comparable size companies.
We think many would like to see better growth. While the CEO may not be underpaid, we don’t think the pay is too generous either. So you may want to check if insiders are buying United-Guardian shares with their own money (free access).
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 email@example.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. On rare occasion, data errors may occur. Thank you for reading.