Paul Arling has been the CEO of Universal Electronics Inc. (NASDAQ:UEIC) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
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How Does Paul Arling’s Compensation Compare With Similar Sized Companies?
Our data indicates that Universal Electronics Inc. is worth US$383m, and total annual CEO compensation is US$2.4m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$830k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.6m.
Thus we can conclude that Paul Arling receives more in total compensation than the median of a group of companies in the same market, and of similar size to Universal Electronics Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Universal Electronics, below.
Is Universal Electronics Inc. Growing?
Universal Electronics Inc. has reduced its earnings per share by an average of 64% a year, over the last three years. Its revenue is up 2.4% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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 Universal Electronics Inc. Been A Good Investment?
Since shareholders would have lost about 37% over three years, some Universal Electronics Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Universal Electronics Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! So you may want to check if insiders are buying Universal Electronics shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.